Trump's tariffs dominate the G20 agenda in South Africa. Image: Bloomberg.
(The Post News)– South Africa is calling on G20 countries to demonstrate global leadership and cooperation to address pressing issues, including rising trade barriers, amid President Donald Trump’s tariff threats.
The G20, formed to combat the 2008 global financial crisis, has been hindered by disputes among key players, including Russia’s war in Ukraine and Western sanctions. Despite these challenges, South Africa’s presidency aims to promote an African agenda, focusing on issues like high capital costs and climate change funding. Godongwana stressed the importance of revitalizing multilateralism and driving collective action to address global challenges.
However, questions linger about the G20’s ability to tackle these issues, given its non-binding agreements. US Treasury Secretary Scott Bessent won’t attend the meeting, with Michael Kaplan representing the US instead. Finance ministers from India, France, and Russia will also be absent. South Africa’s central bank governor Lesetja Kganyago believes representation is what matters most, saying, “What matters is, is there somebody with a mandate sitting behind the flag, and are all countries represented?”
Trump’s tariff policies have clouded the economic outlook, with potential tariffs on BRICS nations raising fears of fragmentation within global forums. Germany’s Bundesbank chief Joachim Nagel warned that Trump’s proposed 30% tariffs could eliminate Europe’s largest economy’s expected 0.7% growth next year, potentially leading to a recession in Germany in 2025. Nagel also cautioned against interfering with central bank independence, citing Trump’s attacks on US Federal Reserve Chair Jerome Powell.
The G20 hopes to issue its first communique under the South African presidency by the end of the meetings, a significant step given the group’s struggles to reach consensus in recent years. US officials have said little about their plans for the presidency next year, but one source suggests Washington will streamline the summit schedule and reduce non-financial working groups.
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