Bessent says 19 finance ministers agreed 'cheap exports' are unsustainable, but China dissented

Treasury Secretary Scott Bessent stated on Tuesday that 19 finance ministers from the G20 countries agreed to address the issue of cheap exports causing global economic imbalances, but China dissented. Bessent expressed that achieving this consensus was remarkable and highlighted the immense scale of the challenge. He discussed his efforts to persuade some G20 members to adopt tariffs and other measures, similar to the Trump administration's strategy to tackle trade imbalances.

Bessent recalled warning nations prior to the onset of President Trump's second term that the U.S. tariff policy would lead to Chinese goods flooding their markets. He emphasized that the rest of the world must reconsider their approach to safeguard their citizens' jobs and manufacturing sectors to prevent offshoring. The Trump administration's tariffs have faced criticism for raising consumer costs and punishing allies.

In February, the U.S. Supreme Court declared Trump's global tariffs unconstitutional. Bessent met with Chinese counterparts at the summit, although specifics on the discussions were not disclosed. He acknowledged their shared views on Iran's nuclear capabilities and freedom of navigation in the Strait of Hormuz. Bessent criticized China's record-high trade surplus of $1.2 trillion in 2025 and excessive regulations, while noting that global debt has reached $353 trillion, with U.S. debt at $40 trillion in August.

Market concerns about U.S. government bond sell-offs were addressed, with Bessent expressing no dire concerns. Russian Finance Minister Anton Siluanov's attendance generated discomfort among attendees, notably Canadian Finance Minister Francois-Philippe Champagne and others. European Economy Commissioner Valdis Dombrovskis called for cautious relations with Russia.