US President Donald Trump on Saturday called for a revamp of the global trade system, insisting he wanted the complete removal of trade barriers within the Group of Seven (G7).
Merkel said there was a broad agreement among G7 leaders that tariffs and other trade barriers should be reduced.
He is not expected to stay till the end of the summit.
Finance Minister Bill Morneau said that message was communicated clearly to Trump during his meetings at the G7 summit with fellow leaders, and in his face-to-face talk with Prime Minister Justin Trudeau.
G7 leaders pledged Saturday to ensure Iran's nuclear program remains peaceful in a joint statement between the U.S. and European allies angered by Donald Trump's pullout from an internationally-agreed accord.
"We're like the piggy bank that everybody is robbing", he said at an earlier news conference as his counterparts continued their meeting in La Malbaie, Quebec, and officials hammered out a joint communique.
"He's happy", said Trump, to laughter.
He and Trudeau discussed the notion of a bilateral deal when they met Friday, according to a White House statement.
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"After calling out Trudeau and Macron before the summit, he took a different approach on Saturday, "[congratulating] he leaders of other countries for crazily being able to make these trade deals that were so good for their countries and bad for the United States" and chastising his predecessors for allowing the U.S.to be taken advantage of.
"Looking forward to straightening out unfair Trade Deals with the G-7 countries". He explained that France runs trade deficits with Germany and the United Kingdom on manufactured goods, even though all three countries are part of the European Union single market and have zero tariffs between them.
President Donald Trump says the leaders of six of the world's leading economies "fully understand where I am coming from" on trade. "I think it would be good to have Russian Federation back in".
Trump cited progress on reaching an agreement on the North American Free Trade Agreement with Canada and Mexico, saying the final outcome would lead either to an improved trade deal or separate pacts with the two USA neighbors.
Tensions between the US and the other G7 countries have become inflamed in recent weeks as Trump imposed steep tariffs on steel and aluminum imports from the European Union and Canada for what the White House says are national security reasons.
Sources tell CBC News the US will commit to lowering trade tariffs, but will leave its name off a commitment to implement the Paris climate agreement.
Trudeau has worked hard to find common ground with the unpredictable president, but the personal bond he has tried to forge has been strained. It was the first violation of a European country's borders since World War II.
Trump had grumbled to aides ahead of the meeting that he didnt want to go sit through lectures from the other leaders, and he mused about sending Vice President Mike Pence in his place.
Asked whether he thought the leaders could agree on a joint statement, Trump said, "I think we'll have a joint statement". "A lot of these countries actually smile at me while I'm talking and the smile is, 'we can't believe that we got away with it'".
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