The logo for the G7 summit at the Pomeroy Kananaskis Mountain Lodge stands at the press center in Banff, Canada. Photo: VCG

Leaders of the Group of Seven nations arrived in the Canadian Rockies on Sunday local time for a summit overshadowed by escalating tensions between Israel and Iran, and ongoing trade disputes under the US administration, the AP reported on Monday.

The summit is being closely watched by the world as it marks US President Donald Trump's first international summit of his second term. While the group seeks to project unity, fundamental differences have become too deep to conceal under the US' "America First" approach. As Prime Minister Carney gets ready to host Trump and other leaders, analysts say Canada's most important goal will be to keep the G7 from falling apart.

As summit host, Canadian Prime Minister Mark Carney designed an agenda aimed at minimizing disagreements within the club of wealthy nations, AFP reported. Carney said his priorities are strengthening peace and security, building critical mineral supply chains and creating jobs, reported Reuters.

However, trade tensions may be unavoidable, as the US runs trade deficits with all G7 countries except the UK, AP reported.

The Politico reported that last time when G7 leaders met in Canada in 2018, Trump left early after coming under fire over his first-term tariffs. This time, the trade tensions are far more severe. 

While the UK has struck a provisional trade deal with the US, three G7 members - Germany, France and Italy - are still in the firing line as members of the EU, which functions as a common trade bloc. Japan, the other member of the club, is on the higher end of the scale because of the elevated share of autos in its exports to the US, the report said.

In addition, Israel's latest strikes on Iran and Tehran's retaliation added urgency to talks amid rising global instability and geopolitical uncertainty, France24 reported, and the conflicts in the Middle East and Ukraine are expected to feature heavily during the summit. 

Also looming over the meeting are the current US administration's threats to make Canada America's 51st state and take over Greenland. French President Emmanuel Macron visited Greenland on Sunday for a highly symbolic stop on his way to Canada. Macron warned that Greenland is "not to be sold" nor "to be taken," and "the situation in Greenland is clearly a wakeup call for all Europeans," per the AP report.

As summit host, Carney has decided to abandon the annual practice of issuing a joint statement, or communique, at the end of the meeting, media reports said. 

The rift between the US and other G7 nations is growing ever deeper, a Chinese expert said. Beyond tariffs, Washington's stance on the Russia-Ukraine conflict diverges sharply from Europe's position, while its push to reduce America's overseas military presence and even threats to annex the summit host Canada have further strained ties. 

Cui Hongjian, professor of the Academy of Regional and Global Governance at Beijing Foreign Studies University, told Global Times on Monday that while the group originally aimed to show unity and downplay differences, the contradictions have become increasingly difficult to conceal under US' "America First" policy. 

Other member states, while maintaining a facade of solidarity, hold fundamentally divergent positions. As host nation, Canada is attempting to steer discussions toward less contentious issues to divert attention, but substantive agreements on core matters such as trade tariffs still remain out of reach, Cui said.