Bessent urges G20 peers to adopt tariffs against cheap imports

US Treasury Secretary Scott Bessent has advised his counterparts in the G20 to consider adopting tariff measures similar to Washington's approach to counter trade imbalances and protect domestic industries.

Speaking on the sidelines of the G20 finance ministers' meetings, Bessent said he had cautioned other nations at the start of President Donald Trump's second term that the new American "tariff wall" would redirect Chinese goods towards their markets. "And unfortunately, I was right," he told reporters, adding that other countries should examine measures to safeguard jobs and manufacturing bases from offshoring.

The advice comes amid criticism of the Trump administration's tariff policies, which economists and politicians say have raised costs for US consumers and strained ties with allies. An independent think tank, the Tax Foundation, estimated that tariffs imposed during 2025 increased retail prices of imported consumer goods by roughly 7% compared to pre-tariff trends.

In February, the US Supreme Court ruled that the sweeping global tariffs imposed under an emergency powers law were unconstitutional. The administration is now revising its approach and considering an additional 7.5% tariff on Chinese imports following an investigation into alleged excess industrial capacity and forced-labor practices.

Bessent met with Chinese counterparts at the summit, though he did not disclose details of the discussions. He reiterated the need to "de-risk" rather than decouple, noting shared interests with China on issues like preventing a nuclear-armed Iran and ensuring freedom of navigation in the Strait of Hormuz.

He also pointed to China's record-high trade surplus of $1.2 trillion in 2025 as a barrier to global growth. Meanwhile, global debt has hit a record $353 trillion, with US debt reaching $40 trillion in August. Despite market concerns over a sell-off in US government bonds, Bessent said he did not believe the situation was "dire."