At a summit meant to showcase President Trump’s
economic policies as a model for the world, Europeans complained about tariffs and
the war with Iran.
·
U.S.
message: Treasury Secretary Scott Bessent used the
G20 finance ministers and central bankers’ meeting in Asheville to promote the
strength of the U.S. economy under President Trump and urge other countries to
adopt similar policies.
·
Allied
pushback: European, Canadian and other
U.S.-friendly governments openly expressed concerns about Trump administration policies,
arguing that some measures were hurting their economies and undermining global
growth.
·
Iran
war impact: Allies criticised the war with Iran, citing
disruptions to energy
markets and shipping and its negative effect on economic
growth.
·
Currency
controversy: European officials objected to Bessent’s
decision to sell U.S. holdings of euros
to support Japan’s yen, saying the move was made without prior
coordination and had the effect of weakening the euro.
·
Tariff
tensions: Growing U.S. tariff disputes,
particularly the escalating conflict with Canada, were another major source of
disagreement. Germany’s Lars Klingbeil said such policies were eroding trust in
global trade.
·
Different
economic philosophies:
o The Trump
administration is emphasising deregulation, AI, fossil-fuel
production, tax policies and business investment.
o Europe
remains more cautious on deregulation and AI while continuing its transition
toward renewable energy such as wind and solar.
·
U.S.
economic advantage: The U.S. economy is still growing faster
than many peers. The IMF projects U.S. growth this year at more than twice the rate of the eurozone
or Canada.
·
But
policy uncertainty is a concern: The
IMF and German economists said the Iran war and U.S. tariffs have dampened growth, while
German officials warned that uncertainty is damaging economic activity.
·
U.S.
corporate involvement: Bessent invited
American CEOs from sectors including banking
and cryptocurrency to participate in G20 discussions,
presenting this as a way to strengthen public-private cooperation and
investment.
·
AI
leadership: Bessent highlighted the U.S. position as
an “AI superpower”,
attributing its technological advantage partly to regulatory, tax and energy
policies.
·
China
also criticised: European officials raised concerns about
China’s state-subsidised
exports, particularly cars and other goods, which they said
were distorting competition.
·
Sharpest
dispute—Canada: Bessent dismissed Canada’s ability to
engage in a “tit-for-tat” dispute with the much larger U.S. Canadian Finance
Minister François-Philippe
Champagne responded that Canada would defend its workers, industries and national
interests.
The
G20 meeting highlighted a widening economic
policy divide between the Trump administration and traditional U.S. allies,
with tariffs, the Iran war, currency intervention and differing approaches to
regulation and energy creating growing tensions despite continued U.S. economic
strength.
[ABS News Service/02.09.2026]
Nearly every session
at the Group of 20 meeting of finance ministers and central bankers in Asheville,
N.C., this week began with Treasury Secretary Scott Bessent extolling the state
of the U.S. economy under President Trump and urging other countries to be more
like America.
America’s allies were
not always receptive. At several points, representatives from Europe, Canada and
other nations friendly to the United States criticized the administration for moves
that they say have hurt their economies.
They voiced displeasure
over the war with Iran, which has resulted in disruptions to energy markets and
shipping. They also raised Mr. Bessent’s surprise decision to sell U.S. holdings
of euros to prop up Japan’s currency last month, and the administration’s escalating
war of words and tariffs with Canada.
The disagreements,
while mostly polite, reflected a growing frustration in Europe and elsewhere over
Mr. Trump’s stewardship of the global economy — and allies’ sense that his policies
have in important ways hindered economic growth, the issue Mr. Bessent said the
administration was “laser-focused” on.
“Despite U.S. strong-arm
tactics, even traditional U.S. allies among the G20 are clearly and publicly at
odds with the Trump administration’s priorities,” said Eswar Prasad, a Cornell University
economist and former head of the International Monetary Fund’s China division.
Some of the difference
is philosophical. Mr. Trump has eviscerated regulatory barriers for businesses,
including the booming artificial intelligence industry, and leaned into fossil fuel
production. European leaders remain more cautious on A.I. and other deregulation
and more committed to a transition to renewable energy sources like wind and solar
power, even as they try to nurture their own tech ecosystem to rival America and
China.
“There are clear differences,
and we will handle it that way,” Lars Klingbeil, the German vice chancellor, told
reporters on Tuesday in Asheville. He pointed to America’s tariff conflicts, including
its escalating standoff with Canada, which he said were eroding trust in global
trade and would “ultimately harm everyone involved.”
Mr. Bessent and colleagues
planned the gathering on Monday and Tuesday as a showcase for the administration’s
policies and an advertisement for the strength of American business. In an apparent
first, Mr. Bessent invited American chief executives from industries including banking
and cryptocurrency to sessions with the visiting officials. All of this was done
under the banner of improving public-private collaboration and juicing investment.
“The foundation of
America’s strength is predicated on remaining the pre-eminent economy in the world,”
Jamie Dimon, the chief executive of JPMorgan Chase, who was one of the executives
in attendance, said in a release lauding Mr. Bessent’s move.
Mr. Bessent opened
Tuesday’s events with a “fireside chat” with the Fox Business host Larry Kudlow,
a former top economic official in Mr. Trump’s first administration. Both men raved
about America’s business climate under Mr. Trump.
“The U.S. is at a very
special place in the world because we are the A.I. superpower and we are pulling
away in computing power,” Mr. Bessent said, crediting the administration’s regulatory,
tax and energy policies. He said he had invited the other countries in attendance
to “come with us and grow.”
The American economy
is growing faster than many of its peers. The International Monetary Fund projects
that the United States will grow more than twice as fast as the eurozone or Canada
this year. Yet the I.M.F. noted this summer that the administration’s war in Iran
had slowed economic growth. German economists say Mr. Trump’s war and his tariffs
on Europe have dampened what otherwise has been the strongest year of German growth
since 2022.
On Monday, European
leaders used one of the open discussions to complain that Mr. Bessent had not informed
them in advance of his plans to use America’s holdings of euros in an effort to
boost the value of Japan’s currency, the yen. By using euros, Mr. Bessent pushed
down the value of Europe’s currency while protecting the value of the dollar.
Joachim Nagel, the
head of Germany’s central bank, said he believed that the criticism had resonated,
and that American officials now understood why Europeans “were not really enthusiastic
about the fact that there was no prior coordination.”
Mr. Klingbeil told
reporters that Europeans had raised other concerns as well, both with America and
with China, which has flooded many wealthy nations with state-subsidized exports
of cars and other goods.
“The past few months
have shown that uncertainty is poison for economic growth,” Mr. Klingbeil said.
“The Iran war, the ongoing tariff disputes with the U.S. and distortions of competition
like we are experiencing from China, all of this leads to instability.”
The most open conflict
was between America and its northern neighbor. Mr. Bessent was dismissive of Canada
in a CNBC interview from the summit on Monday, saying, “I don’t think you can be
in a tit-for-tat with someone who’s 13 times larger than you are.”
Before a meeting with
Mr. Bessent on Tuesday, the Canadian finance minister, François-Philippe Champagne,
responded defiantly.
He planned to tell
Mr. Bessent, he said, that “we’re going to defend our workers, our industries and
Canada.”