Merkel's comments come after a weekend of tense diplomacy in Canada, where Trump did not endorse the G7 communique.
"The issue of tariffs can not be looked at in isolation, we must also think about issues such as subsidies", she said. The summit did not mark the end of the Trans-Atlantic partnership between Europe and the US, Merkel said, but repeated her opinion that Europe could "no longer rely on its once close ally as a rational partner" under the Trump administration and "should take its fate into its own hands".
Jeremy Corbyn said Donald Trump was to blame for the summit's "failure".
However, despite Trump's decision, Merkel insisted that she would continue working with him and at the same time, prepare the European Union to counter the U.S. tariffs on steel and aluminum just like Canada.
Multilateral action was needed to prevent "tit-for-tat" reprisals, she said, adding that the concerns of countries about unfair trade practices must be "addressed not ignored". "Instead, we act then too".
Trump ultimately refused to sign on to the communique. As the summit closed, Trudeau held a televised news conference to discuss the communication, where he was asked about Trump's new tariffs on Canadian steel and aluminum. But the summit host, Trudeau, whose nation was among those singled out by Trump, pushed back and said he would not hesitate to retaliate against his neighbor to the south.
May thanked Canadian Prime Minister Justin Trudeau for organizing the summit. Speaking on the condition of anonymity a Canadian official told national broadcaster CBC that not only had Trudeau made these remarks prior to the meeting, on US television last week, he had also informed Trump of his position before he went on air.
Senior Trump aides escalated the rhetoric on Sunday morning's news shows, with chief economic adviser Larry Kudlow calling Trudeau's remarks "a betrayal" on CNN's "State of the Union" and top trade adviser Peter Navarro saying on "Fox News Sunday" that "there's a special place in hell" for the Canadian leader.
"We spent two days producing a statement and commitments", the statement said.