G20 finance chiefs at odds addressing concerns over protectionism #JapanFinance

Finance chiefs from the Group of 20 advanced and emerging economies on Thursday remained at odds in addressing growing concerns over protectionism as the United States’ imposition of a series of import tariffs sparks retaliation.

With top officials from several major economies absent, the G20 finance ministers and central bank governors failed to issue a joint statement after a two-day meeting in Cape Town from Wednesday, just as the group’s foreign ministers did last week.

South African Finance Minister Enoch Godongwana (R) attends a press conference in Cape Town, South Africa, on Feb. 27, 2025, following a Group of 20 finance ministers and central bank governors’ meeting. (Kyodo) ==Kyodo

But South Africa as chair of the meeting voiced concern about the impact of trade wars on the global economy, expressing support for a “rules-based, nondiscriminatory, fair, open, inclusive, equitable, sustainable, and transparent multilateral trading system” in a summary.

Reiterating “the commitment to resisting protectionism,” South Africa said in the summary that downside risks to the global economy “may hinder the achievement of strong, sustainable, balanced and inclusive economic growth.”

Japanese senior vice finance minister Hiroaki Saito, along with Bank of Japan chief Kazuo Ueda, joined the gathering.

Ueda expressed concern about U.S. tariff policies and countermeasures by other countries, saying at a press conference that there are “various uncertain factors.” Saito said at the press conference that he raised “the importance of collaboration” during the gathering.

Japan’s Finance Minister Katsunobu Kato did not attend the meeting as he focused on parliamentary deliberations on the government’s budget for the next fiscal year.

Reflecting U.S. President Donald Trump’s disdain for multilateral frameworks, Treasury Secretary Scott Bessent was not present at the meeting following Secretary of State Marco Rubio’s absence from the G20 foreign ministers’ two-day talks in Johannesburg from Feb. 20.

Trump, who returned to the White House on Jan. 20 under his unilateralist and protectionist “America First” banner, said Thursday he will double his administration’s additional tariff imposed on imports from China to 20 percent, effective Tuesday.

The president also said his proposed 25 percent duties on Canadian and Mexican goods entering the U.S. market will take effect the same day.

Hiroaki Saito (C), senior vice finance minister of Japan, and Bank of Japan Governor Kazuo Ueda (R) attend a press conference in Cape Town, South Africa, on Feb. 27, 2025, following a Group of 20 finance ministers and central bank governors’ meeting. (Kyodo) ==Kyodo

The initial extra tariff on Chinese products spurred immediate retaliatory measures by Beijing.

South Africa referred to “ongoing conflicts,” apparently referring to Russia’s invasion of Ukraine and the situation in the Middle East, as part of the downside risks to the global economy.

Canada, China and India also did not dispatch their finance chiefs, according to the South African government.

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