Johnson Takes a Crack at Macron Over Mercosur Threat: G-7 Update

(Bloomberg) — Group of Seven leaders are arriving in Biarritz, France, Saturday for two days of talks with tempers flaring on a range of issues from trade to climate.

Must read: U.S. Thinks Macron Twisting G-7 to Hurt Trump, Win Favor at HomeBoris Johnson’s Long Journey From Trump Hater to Best Friend

Key Developments:

France’s Macron demands G-7 action over Amazon forest firesMacron isolated over threat to block Mercosur trade dealTrump and Macron meet for informal lunch before start of talks

Behind the Scenes, the U.S. Is Angry With Macron (3:10 p.m.)

It may have all looked very nice and cordial over lunch but when Trump said that sometimes he and Macron “go at it” he might have been hinting at tensions bubbling in the background.

U.S. officials are not at all happy with how France has conducted the organization of the summit — they believe designed to embarrass the president on issues such as climate. They accuse the French of being difficult to deal with and that the original summit schedule said little of nothing on trade and the global economy.

A French official responded that economy is the first item on the agenda and that ignoring climate change — a topic Trump is allergic to — would be like putting one’s head in the sand. Not an option. And as for the economy, another French official said it was in indeed in the first version of the schedule.

At dinner tonight, Macron will be leading his introduction on the Amazon fires and calling for action. Trump’s facial expressions might be the most revealing sign of where those talks will go and indeed how explosive this summit will be.

Johnson Takes a Pop a Macron’s Trade Threat (4:14 p.m.)

U.K. Prime Minister Boris Johnson joined attacks on Macron for his threat to block the EU’s trade deal with the Mercosur nations of South America.

“There are all sorts of people who will take any excuse at all to interfere with trade and to frustrate trade deals and I don’t want to see that,” Johnson told reporters as he arrived in Biarritz.

Macron on Friday said he won’t ratify the trade accord sealed in June because Brazilian President Jair Bolsonaro can’t be trusted to honor his commitments on climate.

Johnson Worries About Trade Dispute Hurting U.K. (3 p.m.)

Boris Johnson has landed, and in comments made to reporters on the plane expressed concern that the U.K. could get sucked into a spiraling trade dispute, one that many Europeans blame Trump for escalating.

“Those who support the tariffs are at risk of incurring the blame for the downturn in the global economy, irrespective of whether or not that is true,” Johnson said in carefully chosen words that point to his predicament of walking the line between nurturing his relationship with Trump, but being clear that he thinks tariffs are damaging.

The U.K. is ” at risk” of being affected, he told reporters.

Trump Calls his Relationship with Macron Special (1:40 p.m.)

Donald Trump and Emmanuel Macron — at odds on issues from climate, to tech giants and wine — struck a cordial tone over a surprise lunch meeting.

Across from each other at an outside table — with a bouquet of pink and red roses in the middle — the two presidents gave brief remarks. Macron ran through some problem spots such as Syria, Ukraine, North Korea and Iran. “This discussion will be very important between allies, friends,” Macron said.

Trump acknowledged the two had been at odds lately on some issues, but said he has a “special relationship” with Macron. “Every so often we go at it a little bit, not very much,” he said. “I think we’ll accomplish a lot this weekend, and I look forward to it.”

The cameras gone, the two settled down for a long lunch.

Macron Sits with Trump for Lunch, Speaks to Nation (1 p.m.)

At the hotel, overlooking the bay, Macron and Trump will sit down from lunch. They will be giving a joint news conference at the end of the summit too, according to two U.S. officials.

As Trump was getting ready to land, the French president addressed the nation.

Standing with the pristine view of the chic town of Biarritz and the Ocean in his back, Macron promised his fellow citizens to make this a “useful” G7 in an address to the nation, aired on all the country’s televisions. “I promise you to do all I can in your name, to get my colleagues to agree” on Iran, trade, economic stimulus, inequalities, climate and other hot topics. “We probably won’t succeed on everything, don’t bear me a grudge if we fail sometimes, France must do all it can but can’t do everything.”

Without ever mentioning the U.S. by name in his 10-minute address, he vowed to convince partners to address areas of disagreement,“especially trade tensions are bad for everyone.”

Don’t Be Mr. No-Deal Brexit, Tusk Tells Johnson (1:50 p.m.)

European Council President Donald Tusk urged Prime Minister Boris Johnson not to become “Mr. No Deal” as he warned that Ireland would have to back any changes to the Brexit agreement the British government proposed.

Speaking ahead of talks with Johnson in the margins of the Group of Seven summit in Biarritz, France on Sunday, Tusk said he was willing to work with the U.K. leader to try to make the Brexit deal more acceptable to the British Parliament. The House of Commons rejected the original agreement three times and Johnson has said that if the “backstop” mechanism to prevent a hard Irish border isn’t removed, the U.K. will leave without the safety net of a deal.

“One thing I will not cooperate on is no deal and I still hope that Prime minister Johnson would not like to go down in history as Mr No Deal,” Tusk said.

Europe’s G-7 Stance Shaped by Trump (1:04 p.m.)

European Council President Donald Tusk set out the EU’s stall for the summit, making it clear that the bloc opposed many of the positions put forward by U.S. President Donald Trump. In a news conference before the start of the summit, Tusk warned the American president that Europe didn’t share his views on issues ranging from Iran to trade to Russia.

“Trade wars will lead to recessions” and “trade wars among G-7 members will lead to an eroding of the already weakened trust among us,” Tusk said.

He said Trump’s rejection of the nuclear deal with Iran “hasn’t brought about any positive results” and the move played into the hands of the Iranian regime as well as Russia and China. The EU will push once again for consensus on the Iran agreement, Tusk added.

Russia won’t be invited back in the G-7 fold, Tusk said, in a direct rebuff to Trump. He recalled the U.S. leader’s suggestion that Russia snatching Crimea from Ukraine was acceptable. “Under no condition can we agree on this logic,” Tusk said, adding provocatively that he’d like to see Ukraine invited to a G-7 summit rather than Russia. Next year’s meeting will be hosted by Trump in the U.S.

EU Will Retaliate If Trump Targets French Wine (12:35 p.m.)

The EU will “respond in kind” if Trump announces tariffs on French wine, Tusk said at his press conference ahead of the talks which begin Saturday evening.

Trump has threatened tariffs on wine in retaliation for a French digital tax that affects U.S. internet giants, casting the French as the aggressors. But Tusk suggested the EU will see tax and tariffs as separate issues.

“France can count on our loyalty,” Tusk said.

Trump mused at a recent fundraiser about a 100% tariff on French wine, though it’s not clear how serious he was.

Earlier:

Macron Rips Up Agenda for His G-7 in a Fit of Climate FuryMacron Riles Bolsonaro, Setting Up G-7 Fight Over Amazon FiresDonald Trump Is Coming for Europe’s Most Important Alliance

–With assistance from Helene Fouquet and Arne Delfs.

To contact the reporters on this story: Josh Wingrove in Biarritz at [email protected];Ian Wishart in Biarritz, France at [email protected]

To contact the editor responsible for this story: Ben Sills at [email protected]

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