‘Handful’ of G20 countries reject US stance on excess industrial capacity
SPY•A handful of G20 countries rejected the US call to curb excess industrial capacity and non-market policies, while only Mexico and Argentina joined a US-led statement on forced labor in supply chains. The US is investigating 16 trading partners for excess capacity, a probe expected to lead to new duties in coming months.
1. G20 divisions on trade
The US said a handful of G20 trade ministers rejected calls to curb excess industrial capacity and non-market policies. The statement did not identify the countries that objected. Only Mexico and Argentina signed a US-led statement calling for more work to eliminate goods produced with forced labor from supply chains.
2. Tariff investigations
The Trump administration has imposed tariffs of 10% or 12.5% on goods from 59 countries and the European Union over allegations they fail to adequately enforce bans on forced labor. The US is also conducting a Section 301 investigation into 16 trading partners showing signs of excess industrial capacity, which is expected to lead to new duties in coming months.
3. Food trade statement
G20 trade ministers agreed to condemn the weaponization of food trade, saying food and agricultural inputs should not be used for economic or political coercion. The ministers described food weaponization as measures that slow, stop, block or direct those flows to extract unrelated geopolitical concessions.
