US Treasury Secretary Scott Bessent is urging some of his G20 counterparts to adopt the Trump administration's playbook of using tariffs and other measures to crack down on trade imbalances, as the global economy faces mounting uncertainties.

The administration of US President Donald Trump on Tuesday pressed other G20 countries to do more to protect their domestic industries and job markets from Chinese imports, arguing that such distortions were 'sucking' much-needed growth out of the global economy.

The two-day meeting of finance chiefs in Asheville, North Carolina, took place amid a global bond market selloff driven by worries over rising debt levels and inflation pressures, underscoring the fragility of the current economic climate.

Bessent claimed he had warned other trading partners last year that tougher US tariffs would lead to an influx of Chinese goods diverted to their markets. 'And unfortunately, I was right. They have – and the rest of the world probably needs to take a hard look at what they should be doing to protect their citizens' jobs,' he told the meeting.

'We're seeing a lot of non-market economies with these big imbalances that are sucking growth from the rest of the world,' Bessent told reporters, pointing fingers at China's massive export push.

China's export surge has pressured economies globally, especially as the US has imposed high tariffs on Chinese goods and outright bans on some products, such as Chinese vehicles. With chronically weak domestic demand, China has doubled down on exports of electric vehicles, semiconductors, and other goods, with total exports rising 23.9 percent year-on-year in July, prompting growing calls in Europe for tougher curbs.

However, the Trump regime's tariff policies have been criticized by economists and politicians for raising costs for US consumers and, in many cases, punishing allies. The Tax Foundation, an independent think tank, found that tariffs imposed by the Trump regime throughout 2025 raised the overall retail price of imported consumer goods by roughly 7 percent relative to pre-tariff trends.

European Economy Commissioner Valdis Dombrovskis agreed that China is a major source of economic imbalances, but said that the US and Europe also had roles to play in evening things out. In more direct comments, German Finance Minister Lars Klingbeil noted that the US-Israel war on Iran, together with ongoing US tariff disputes, were also major causes of uncertainty holding back the global economy. 'Uncertainty is poison for economic growth,' he said. 'The tariff conflicts being pursued by the US, such as the current dispute with Canada, destroy trust.'

It remains unclear whether the US will be able to bring the diverse forum together to agree on a joint communique on how to reduce global imbalances. G20 member China has shown little interest in longstanding calls to reduce industrial subsidies and rebalance its economy, while its yuan currency remains significantly undervalued by most measures.

Beijing has also exploited its dominance in processing critical minerals by placing export restrictions on rare earths in April 2025, a response to Trump's tariffs that have also hit non-US companies. The meeting highlighted deep divisions within the G20, with the US pushing for aggressive trade measures while others urge caution.

Source: www.aljazeera.com