Leaders of the G7 group of nations, which includes the Unted States, Canada, Japan, the United Kingdom, Germany, France and Italy, as well as the European Union, are meeting at Taormina from May 26-27.
The schism seems to have been opened by U.S. President Donald Trump's "America first" agenda.
Merkel said Friday at the summit that it's well known that Germany sells more to the USA than it buys from America, "which on the one hand has to do with the quality of our goods", but noted that there is also a lot of German direct investment in the U.S.
"The entire discussion about climate was very hard, if not to say very dissatisfying", German Chancellor Angela Merkel told reporters on Saturday. "If they can't come together on something as devastating as this, then what are they here for?" said Chris Derksen Hiebert, director of policy for World Vision International.
Disappointment over the Paris Agreement was countered by relief when Trump agreed on Saturday to language in the final G7 communique that pledged "to fight all forms of protectionism" and committed to a rules-based worldwide trade system.
Although he tweeted that he would make a decision next week, his apparent reluctance to embrace the first-ever legally binding global climate deal that was signed by 195 countries clearly annoyed German Chancellor Angela Merkel.
However, there was relief that Trump agreed to language in the final G7 communique that pledged to fight protectionism and commits to a rules-based global trade system.
However, the other G7 leaders pledged to "reaffirm their strong commitment to swiftly implement the Paris Agreement".
The communique notes that the Americans are "not in a position to join consensus" on climate change.
"The same report indicates that Trump may be "evolving" on the issue, with the president's National Economic Counselor Gary Cohn saying, "[Trump] came here to learn, he came here to get smarter and he came here to hear people's views".
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French President Emmanuel Macron praised President Donald Trump's "capacity to listen" and his "intention to progress with us".
Marcon and Trump were both attending a G-7 summit for the first time.
"He did not make a decision not to say it". His Treasury secretary, Steven Mnuchin, has said the United States reserves the right to be protectionist if trade arrangements are unfair to US companies and workers.
"This is a battle between good and evil", Trump said in the speech to leaders of Arab nations, the cradle of the Muslim religion.
Despite the discord, Trump concluded his first overseas trip on a typically bullish note, telling United States service families at the Sigonella base in Sicily he had "hit a home run" shortly before taking off to fly back home.
"The Paris accord, created in 2015 after lengthy negotiations, calls on 196 nations to ratchet back greenhouse gas emissions".
Italian Prime Minister Paolo Gentiloni, who chaired the meeting, said the other six "won't change our position on climate change one millimeter".
It turns out a year is a long time in G-7 summitry.
Not far from the summit meeting, which was held in a historic monastery-turned-luxury hotel on a cliff overlooking the Ionian Sea, several thousand demonstrators had assembled in the nearby town of Giardini Naxos to march toward police barricades. G-7 finance ministers meeting in Bari, Italy, earlier this month agreed only to say they are "working to strengthen the contribution of trade to our economies".