The new week in the United States starts in the shadow of harsh statements made in the aftermath of the G7 Leader Summit, which took place in Quebec City, Canada.
During the two-day meeting between the leaders of the seven industrialized nations, the main discussion centered on tariffs imposed by U.S. President Donald Trump.
Tensions among the leaders were clearly visible in the photographs released by the Office of German Chancellor Angela Merkel, as well as the solo press conference held by Canadian Prime Minister Justin Trudeau at the end of the summit.
Trudeau condemned the U.S. tariffs on Canadian steel and aluminum and called the Trump administration’s national security threat argument 'an insult to the Canadians who fought shoulder to shoulder with U.S. soldiers since the First World War.”
In response, Trump said his administration would not endorse the final statement of the G7 and then lashed out at the Canadian prime minister on Twitter.
“Based on Justin’s false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U.S. farmers, workers and companies, I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!” Trump wrote.
“PM Justin Trudeau of Canada acted so meek and mild during our @G7 meetings only to give a news conference after I left saying that, “U.S. Tariffs were kind of insulting” and he “will not be pushed around.” Very dishonest & weak. Our Tariffs are in response to his of 270 percent on dairy!” he said in another tweet.
Trudeau was also the target of White House trade advisors.
'There's a special place in hell for any foreign leader that engages in bad faith diplomacy with President Donald J. Trump and then tries to stab him in the back on the way out the door,' Peter Navarro said on 'Fox News Sunday.'
He continued, 'And that's what bad faith Justin Trudeau did with that stunt press conference. That's what weak, dishonest Justin Trudeau did, and that comes right from Air Force One.'
-Trump-Kim summit
The repercussions of the bizarre G7 Leader Summit will probably be out of the news cycle, as Trump and North Korean Leader Kim Jong-Un are set to hold a historic meeting in Singapore on Tuesday.
All eyes will be on the meeting as it might be the first step towards ending a long-standing conflict in the Korean peninsula as well as the threat of nuclear war.
-Fed meeting and headline inflation
The economic agenda of the week also looks eventful. The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve will meet for a two-day meeting on Tuesday.
The FOMC announcement, the interest rate decision, and the Summary of Economic Projections are scheduled for release on Wednesday, June 13. The Fed Chair Jerome Powell will be holding a press conference shortly after the announcement.
Many expect the Fed to take another step further in policy normalization with a 25 basis points rate hike.
Lastly, inflation data to be released Tuesday is also on the watch-list of investors.