In Japan, preparations are underway for an increase in government spending to counteract an October sales tax increase. Finance Minister Taro Aso also signaled Tokyo’s readiness to deploy further fiscal stimulus if it’s warranted after a G-7 ministers meeting in July.

“Along with Germany, Japan is likely to add momentum toward fiscal policy in the global economy,” said Kyohei Morita, chief Japan economist at Credit Agricole Securities Asia.

But there are still questions over whether Japanese households can withstand the tax hike. A similar increase in 2014 triggered a sharp contraction and this time foreign demand is unlikely to provide a buffer. Japan’s exports have fallen for eight straight months thanks to the Trump trade wars and reduced demand from China.

That’s one reason the U.S. position and the damage being done by its trade battles is what worries some economists most. With the International Monetary Fund predicting global growth of 3.2% this year, a downgrade that nonetheless remains broadly in line with trend, and unemployment at record lows in many G-7 economies, there are reasons to be hopeful. That doesn’t reduce the risks, however.

‘What’s the Panic?’
“You do ask the question, ‘What’s the panic?’ Why are central banks looking to lower interest rates?” said Torsten Slok, chief economist at Deutsche Bank. “The answer to that question is that the trade war continues to linger and continues to be a huge cloud hanging over the global economy.”

Years ago, leaders were able to find consensus to boost the economy. As the global financial crisis grew in 2008, then President George W. Bush called an emergency G-20 meeting at which leaders agreed to a roadmap to combat the slowdown.

That November 2008 summit was followed by others at which the world’s leading economies agreed to avoid protectionism and to other coordinated actions widely seen as having helped avoid a deeper downturn.

Some attending this weekend’s G-7 summit appear determined to press their case for Trump to at least modify his tactics in his bid to rebalance global trade.

European Union officials say Donald Tusk, who will be the bloc’s chief representative at the meeting, will argue trade tensions are the single most important factor impeding global growth.

So too will Canada’s Justin Trudeau, who is intent on selling himself as a vocal advocate of pluralism and multilateralism, with an election just weeks away.