US Treasury Secretary Scott Bessent urged G20 nations to adopt measures similar to the tariff strategy of President Donald Trump's administration to address trade imbalances. Speaking at a two-day meeting of finance leaders in Asheville, North Carolina, Bessent stressed that non-market economies with large surpluses are “draining” growth from the rest of the world.
The Trump administration pushed G20 countries on Tuesday (Oct 22) to do more to protect domestic industries and labor markets from Chinese imports. The meeting unfolded amid global bond market turbulence fueled by concerns over rising public debt and inflationary pressures.
Bessent said he had warned trading partners that higher US tariffs would redirect Chinese goods to other markets. “Unfortunately, I was right. They did, and the rest of the world should carefully consider what it needs to do to protect jobs for its people,” he told reporters.
China's export surge, particularly in electric vehicles, semiconductors, and other goods, has pressured global economies. Chinese exports rose 23.9% in July year-on-year, prompting calls for Europe to tighten restrictions on imports from the country.
However, the Trump administration's tariff policy has drawn criticism from economists and politicians for raising costs for US consumers and harming allies. According to the Tax Foundation, an independent think tank, tariffs imposed by the Trump administration in 2025 raised retail prices of imported consumer goods by about 7% compared with the pre-tariff trend.
European Economic Commissioner Valdis Dombrovskis agreed that China is a primary source of economic imbalances, but stressed that the US and Europe also have roles in adjustment. German Finance Minister Lars Klingbeil argued that conflicts involving the US and Israel with Iran, along with US tariff disputes, are major sources of global economic instability. “Uncertainty is poison for economic growth. The tariff conflicts pursued by the US, such as the current dispute with Canada, destroy trust,” he said.
It remains unclear whether the US can secure a common agreement at the G20 on reducing global imbalances. China, a G20 member, has shown little interest in calls to reduce industrial subsidies and rebalance its economy, while the yuan remains significantly undervalued by most measures. Beijing has also leveraged its dominance in critical mineral processing by imposing rare earth export restrictions in April 2025, in retaliation for Trump's tariffs, which also affect non-US companies.
