ASHEVILLE, N.C. – Recently, U.S. Treasury Secretary Scott Bessent has been speaking about trade policies and their effects on jobs and manufacturing across the globe. He is encouraging other countries in the G20 to consider using tariffs and similar strategies, similar to those implemented during the Trump administration, to manage trade imbalances.
Bessent mentioned that at the beginning of President Donald Trump’s second term, he warned that the new U.S. “tariff wall” would likely lead to a surge of Chinese products in other nations’ markets. “And unfortunately, I was right,” he stated. He believes countries need to protect their own jobs and manufacturing bases to prevent offshoring.
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The tariff policies during Trump’s administration received mixed reactions. While some supported the idea, many economists argued that these tariffs increased costs for U.S. consumers and negatively impacted allies. According to research from the Tax Foundation, these tariffs raised the retail price of imported goods by about 7% compared to trends before the tariffs were imposed.
In February, the U.S. Supreme Court ruled that the extensive global tariffs imposed under an emergency powers law during Trump’s second term were unconstitutional. As a result, the administration is reconsidering its approach and is looking into implementing an additional 7.5% tariff on imports from China, citing issues like forced labor and surplus industrial capacity.
During the recent G20 finance minister meetings, Bessent met with his Chinese counterparts but did not disclose specific details about their discussions. He emphasized the importance of “de-risking” in trade relations with China, indicating a desire to maintain a working relationship while ensuring safety and security in trade.
Bessent noted that China’s record trade surplus, which hit $1.2 trillion in 2025, poses challenges for global economic growth, alongside what he described as excessive regulations. He pointed out that global debt has surged to an unprecedented $353 trillion, with U.S. debt reaching $40 trillion in August. Despite concerns over U.S. government bonds, Bessent expressed optimism, stating, “I don’t think we’re in any kind of dire situation.”
The presence of Russian Finance Minister Anton Siluanov at the G20 meeting has stirred discomfort among attendees. Canadian Finance Minister François-Philippe Champagne remarked that Siluanov’s attendance created unease, leading to discussions about the appropriateness of Russia’s participation in such gatherings.
European Commissioner for the Economy, Valdis Dombrovskis, echoed these sentiments, stating that it is not the right time to “normalize” relations with Russia, underscoring the complex dynamics at play in global economic discussions.
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Associated Press reporter Rob Gillies in Toronto contributed to this report.
