U.S. Treasury Secretary Scott Bessent Urges G20 Nations to Consider Tariffs Against Cheap Imports

U.S. Treasury Secretary Scott Bessent stated that he is urging G20 counterparts to utilize tariffs and similar measures to address trade imbalances and protect domestic industries from cheap imports.

Speaking to reporters on the sidelines of the G20 finance minister meetings, Bessent noted that he had previously warned other nations at the start of President Donald Trump's second term that a U.S. tariff wall would lead to Chinese goods flooding their markets. "And unfortunately, I was right," Bessent said, adding that the rest of the world should evaluate steps to protect citizens' jobs and manufacturing bases from offshoring.

The Trump administration's tariff policies have faced criticism from politicians and economists regarding increased costs for U.S. consumers and the impact on allies. An independent think tank, the Tax Foundation, reported that tariffs implemented throughout 2025 raised overall retail prices of imported consumer goods by approximately 7 percent compared to pre-tariff trends. Subsequently, the U.S. Supreme Court ruled in February that sweeping global tariffs imposed under an emergency powers law during the second term were unconstitutional. In response, the administration has pursued overhauls, eyeing an additional 7.5 percent tariff on Chinese imports following investigations into alleged excess industrial capacity and forced-labour regulations.

During the summit, Bessent met with counterparts from China, though specific details of the discussions were not disclosed. In a separate conversation with Fox Business commentator Larry Kudlow, Bessent emphasized a strategy of de-risking rather than pulling apart from China. He also noted shared interests between the U.S. and China regarding regional stability, stating that both agree Iran should not possess a nuclear weapon and that there should be freedom of navigation in the Strait of Hormuz. Bessent cited China's record-high trade surplus of $1.2 trillion in 2025 as a barrier to global economic growth alongside excessive regulation.

Addressing broader fiscal conditions, Bessent commented on global debt reaching a record $353 trillion, with U.S. debt hitting $40 trillion in August. Despite market concerns surrounding a potential sell-off in U.S. government bonds, Bessent maintained that the situation is not dire.

"Global trade policies and macroeconomic shifts directly impact supply chains, cost structures, and market stability for businesses across all sectors. As major economies reconsider tariff walls and trade balances, business leaders must closely monitor regulatory shifts, currency dynamics, and supply chain dependencies. Navigating these macro-level trade adjustments requires resilient operational planning and agile risk management to protect profit margins and sustain long-term growth in an evolving international market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes