US urges G20 to cut trade imbalances, focus on China

US Treasury Secretary Scott Bessent urged G20 counterparts at a meeting in Asheville, North Carolina, to adopt measures similar to the Trump administration's approach to address trade imbalances. Bessent argued that non-market economies, particularly China, are creating significant economic distortions that are hindering global growth. He warned that increased US tariffs on Chinese goods have led to a diversion of these products to other markets, impacting their domestic industries and job markets. The article notes that China has intensified its export of goods like electric vehicles and semiconductors due to weak domestic demand, prompting calls for stricter import controls in Europe. The G20 finance chiefs' joint communique regarding these issues remained unclear.

Treasury Secretary Scott Bessent is urging G20 countries to adopt tariffs and other protectionist measures to safeguard their domestic industries from cheap imports, drawing a parallel to the Trump administration's policies. Bessent stated that following the U.S. imposition of tariffs, Chinese goods have flooded other markets, and he believes other nations should protect their jobs and manufacturing bases. While the Trump administration's tariffs faced criticism and were later deemed unconstitutional by the Supreme Court, the current administration is considering additional tariffs on Chinese imports due to concerns about excess industrial capacity and forced labor. Bessent also noted that despite trade imbalances, the U.S. and China share common ground on issues like Iran's nuclear ambitions and freedom of navigation. He expressed confidence that the U.S. is not in a dire situation regarding its bond markets, even as global debt reaches record highs.