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But with trade and tariffs still key, Carney took the opportunity to have a short, intense discussion with Trump, just ahead of a working lunch on the situation in the Middle East.

"Less than three per cent of our market," Carney was heard saying in a hot microphone moment — a likely reference to Chinese-made EVs. "A cap … I thought you'd actually like that."

"That's good, I like it," Trump responded.

The two men also were seen chatting informally while walking together to participate in the G7 family photo.

Canada recently agreed to reduce its 100 per cent tariff on Chinese-made electric vehicles to 6.1 per cent, with an annual import cap of 49,000 vehicles — about three per cent of Canada's market. In turn, China has suspended its retaliatory tariffs on ºÃÉ«tv agricultural products.

Trump has criticized the deal, threatening new tariffs and saying Canada won't be allowed to be a "drop-off port" for Chinese vehicles to enter the United States. In May, two U.S. Democrats from Michigan announced legislation that would prevent Chinese-made cars from entering the U.S., calling them a national security concern and surveillance machines.

Canada-U.S. Trade Minister Dominic LeBlanc, who met with United States Trade Representative Jamieson Greer on the sidelines of the G7 in France on Tuesday, told reporters the conversation on EVs was "one of a number of issues the prime minister discussed with President Trump during the day." 

"There's nothing new in what the prime minister said to President Trump," he said. "It was an opportunity for the prime minister to remind President Trump, as we have with Ambassador Greer and (United States Secretary of Commerce Howard) Lutnick that this in fact takes Canada back to a position in terms of Chinese electric vehicles of two years ago and it was a time-limited, specific arrangement that provided very important relief."

Carney and Trump do not currently have a formal bilateral meeting scheduled during the G7, which ends Wednesday.

The summit comes as trade talks between Canada and the U.S. remain tense, with no clear decision expected soon on whether to extend the continental trade pact known as the Canada-U.S.-Mexico Agreement, or CUSMA.

Tuesday's G7 meetings began with a working session on building peace and security in Ukraine. Trump indicated he's likely to turn his attention to the Russian invasion following a tentative peace deal with Iran.

Trump said Monday he had spoken to both Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin the day before.

Zelenskyy attended the G7 and met with both Trump and Carney on Tuesday.

During his bilateral meeting with the Ukrainian president, Carney announced new sanctions on Russia targeting 162 individuals, entities and vessels tied to Russia's war on Ukraine.

He also said the "tide is turning" in the war and that Ukraine will win.

Carney was asked in an interview with CNN if Trump shares that view. 

"I think it's a view that is held strongly by those who are very active," he said, adding that Canada is the biggest per capita supplier of aid to Ukraine.

"We, the Germans, the U.K., the French, all are of the view that the tide has turned in this war."

On Tuesday, Carney also sat down with the leaders of the United Arab Emirates, India, Italy and South Korea.

After a meeting with Italian Prime Minister Giorgia Meloni, the two announced Canada and Italy have entered talks on a purchase of M-346 advanced jet trainer aircraft. It’s not clear how many jets Canada is looking to buy.

The first full day of the 2026 leaders summit also included discussions of conflicts in the Middle East and a drop in foreign aid funding that is forcing the world to rethink how it handles international development. The G7 leaders issued three joint statements on Tuesday — one on cancer, one on Ebola and one on international development.

The leaders reiterated a pledge to reform how developing countries access debt and financing — something Carney's government has been advocating since his predecessor Justin Trudeau co-chaired efforts at the United Nations to secure those reforms.

The leaders agreed to ramp up efforts to get private funding and philanthropy to share the cost of development work, while acknowledging that G7 countries should still help fund health, education and nutrition for the world's poorest.

The document on international development also urges major donors in the larger G20 group to take part in an existing debt relief program, a likely reference to China. The statement won support from some summit guests but notably not from Brazil, Egypt or India.

Leaders also agreed to collaborate more on cancer research in a second statement. In a third statement, they urged the broader G20 group to work through the United Nations to respond to Ebola, and Trump's administration promised to convene foreign ministers on the issue.

G7 leaders endorsed another three declarations on Tuesday night on geopolitical issues and security. 

In one document, the leaders reaffirmed efforts to prevent and counter the smuggling of migrants. Partner countries Kenya and South Korea also support the declaration. In another, they committed to intensifying their fight against drug trafficking, with Brazil and South Korea also signing on. 

A G7 leaders statement on geopolitical issues touched on Ukraine, the Middle East and the Info-Pacific. 

In the document, the leaders said they stand united in their "unwavering" support for Ukraine in defending its freedom, sovereignty and territorial integrity. They said they agreed to increase defence supports and consider extending licences to allow for an increase in Ukraine’s military production. The leaders said they would strengthen their sanctions on Russia, including those on the oil and gas sectors.

"We consider this the right moment to proceed with additional measures, as President Trump has delivered a deal that we support in reopening the Strait of Hormuz," said the document. 

The document said the leaders recognize "the breakthrough and the opportunity" in the Middle East and that they support and are ready to contribute to the implementation of the peace deal between the U.S. and Iran. The leaders said they committed to accelerate the diversification of energy supply routes to reduce global vulnerability to the Strait of Hormuz and to increase our energy stocks. 

"We welcome the potential for Canada to deliver significant additional capacity to global markets in coming years," said the document. 

On the Indo-Pacific, leaders said they opposed any unilateral attempts to change the status quo in the East and South China Seas and across the Taiwan Strait, which they said "should only be resolved peacefully through dialogue." They also reaffirmed their commitment to the "complete denuclearization of North Korea."

Trump has said he expects the Strait of Hormuz to be fully open by Friday, after announcing a peace deal on Sunday. The critical body of water connecting Gulf states and their oil supplies to the rest of the world has been closed off for months following the U.S. strikes on Iran that began in February. That has upended global oil markets and energy supplies, particularly in parts of Asia.

Canada's Ambassador to France Nathalie Drouin, who is also Carney's former national security adviser, told reporters Canada is ready to contribute in the Middle East, especially in light of the deal between the U.S. and Iran.

Carney told CNN that he is "very pleased" with the preliminary agreement between Iran and the U.S., adding that he has seen the deal.

"I have to say it's exceeded my expectations," he said. "It sets the groundwork to ensure Iran doesn't have a nuclear weapon. It sets the groundwork for a reintegration over time of the economies in the region. It sets the groundwork a solution in Lebanon, which we discussed today.

"So it's positive. Of course, it has to be followed through."

Trump will host the G20 summit in Miami in December, after the U.S. midterm elections, and is also set to host the next G7 summit in 2027.

This report by ºÃÉ«tvwas first published June 16, 2026.

— With files from Dylan Robertson and Jim Bronskill in Ottawa and The Associated Press