Bessent says G20 countries should also use tariffs to protect their industries from cheap imports

Treasury Secretary Scott Bessent has called on some G20 counterparts to adopt the Trump administration's tariff policies to counteract trade imbalances, according to the Associated Press. During a meeting with his counterparts at the G20 finance minister meetings, Bessent admitted that his warning at the start of President Donald Trump's second term about Chinese goods flooding their markets had come true.

He urged the rest of the world to take measures to protect jobs and manufacturing, as everything is no longer offshored. The Trump administration's tariffs, which raised the retail price of imported consumer goods by about 7% in 2025, have been criticized for negatively impacting U.S. consumers and punishing allies. However, the U.S. Supreme Court ruled these global tariffs unconstitutional in 2025.

The administration is now considering a 7.5% tariff increase on Chinese imports due to concerns over Chinese excess industrial capacity and forced labor regulations. Bessent met with Chinese officials at the summit, though the outcome of those discussions was not disclosed. He emphasized the need to de-risk trade relations with China, noting their shared interests in Iran not acquiring nuclear weapons and freedom of navigation in the Strait of Hormuz.

Bessent has also expressed concern about China's trade surplus of $1.2 trillion in 2025 and excessive regulation. Meanwhile, global debt has hit a record high of $353 trillion, with U.S. debt at $40 trillion in August. Markets have shown concern over a potential sell-off in U.S. government bonds, but Bessent remains confident about the bond markets.