Treasury Secretary Scott Bessent encountered a turbulent reception at the G20 summit in Asheville, North Carolina, as European finance ministers issued an ultimatum over the inclusion of Russia's finance minister in a traditional "family photo."
European officials, including German Finance Minister Lars Klingbeil, stated they would not participate in the photo if Russian Finance Minister Anton Siluanov was present. Moscow has been excluded from G20 events since Russia's invasion of Ukraine in 2022. Klingbeil reported that a unified European stance led to the exclusion of the Russian delegation from the photo.
Bessent, however, defended the decision to invite Siluanov, telling reporters, "I know that some Europeans had a sour taste, but I think it's very important to engage."
The diplomatic friction occurred against a backdrop of significant economic challenges. Renewed U.S. strikes on Iran had pushed bond markets to record highs, and a fresh trade war initiated by the U.S. against Canada had created broader economic uncertainty. Bessent had also previously angered European officials by selling euros to buy yen in a joint intervention with Japan to support the Japanese currency.
Amidst these tensions, Bessent asserted that the U.S. was leading the global economy, citing its position as an "AI superpower" with increasing computing power. He attributed this strength to the Trump administration's policies on regulation, taxation, and energy, urging other countries to join the U.S. in pursuing growth as a solution to global debt.
Despite the U.S. economy's projected growth rate, which the IMF expects to exceed that of the Eurozone and Canada, the administration's policies have not been without consequence. The IMF indicated that the war in Iran had slowed U.S. growth, and German economists noted that Trump's actions had weakened Germany's growth prospects.
European officials voiced concerns about the instability caused by U.S. policies. French Finance Minister Roland Lescure stated that it was "no time to add tensions, especially between two historical partners." German central bank chief Joachim Nagel commented on the lack of prior coordination regarding currency interventions, while Klingbeil emphasized that "uncertainty is poison for economic growth."
On the trade front, Bessent was also engaged in a dispute with Canada over $40 billion in tariffs. Canadian Prime Minister Mark Carney accused the Trump administration of not taking negotiations seriously. Bessent, in response, appeared to dismiss Canada's economic standing, telling CNBC that one should not engage in a "tit-for-tat with someone who's 13 times larger than you are."
Despite the controversies, Bessent's outreach to business leaders received positive remarks. Jamie Dimon, CEO of JPMorgan Chase, welcomed the inclusion of the private sector in G20 discussions, stating that "good policy is made better when those who lend, hire, invest and build have a voice in shaping it."
The finance ministers' meeting served as a precursor to the upcoming G20 leaders' summit in December, which will be hosted by Trump at his Doral resort in Florida. The outcome of the November midterm elections is expected to influence the economic agenda leading up to that summit.