The British leader echoed disappointment from other leaders that President Donald Trump first agreed to a communique for "free, fair and mutually beneficial trade" and the reduction of "tariff barriers", but later tweeted he wouldn't endorse the deal.
Canadian Prime Minister Justin Trudeau said his country "will not be pushed around on trade matters." and called US tariffs on Canadian steel and aluminum "insulting".
"We won't let ourselves be ripped off again and again".
In return, Mr Trump made the French president his guest at his first White House state dinner, after which the USA president said of his visitor: "I like him a lot".
The captions reads: "Day two of the G7 summit in Canada: spontaneous meeting between two working sessions".
Trump's announcement on Twitter, after leaving the Group of Seven summit in Canada early, that he was backing out of the joint communique torpedoed what appeared to be a fragile consensus on a trade dispute between Washington and its top allies.
Asked if she was concerned that Trump could retaliate against European Union counter-measures by imposing tariffs on cars, Merkel said: "First of all, we'll try and see if we can prevent this".
The US president came under fire at the contentious G7 summit of leading economic powers for his "America First" protectionist drive.
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Emmanuel Macron has warned Donald Trump about "fits of anger" after the U.S. president refused to endorse a joint communique of G7 leaders.
Officials from Justin Trudeau's team also shared an image of the Canadian PM and summit host leader being presented with work by Prime Minister Theresa May, Mr Macron and Mrs Merkel, while an uninterested Mr Trump stares into space.
In case ya missed it, the leaders of Germany, Canada, Japan, United States, France, Italy, and the United Kingdom have come together to talk global issues.
That statement had sought to overcome deep disagreements, notably over trade.
Germany, Europe's top economy, finds itself in the sights of the United States president due to its large trade surplus and defense spending criticized as too low.
Trump cited unfair trade and tariffs from Canada, a longtime USA ally, as one of the reasons he refused to back the joint statement. Asked by reporters whether he would relent on tariffs, Trump looked at Merkel and said: "I don't know".
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