G20 chair Kganyago says global trade tensions are ‘so elevated’

Global trade tensions have become “so elevated,” according to the central bank chief of South Africa, which chairs the G20.“The tit for tat that takes place means we might actually not be talking to each other,” Lesetja Kganyago told reporters in Washington after meetings of Group of 20 finance ministers and central bank governors. “Even when a hand is being extended so that one country is reaching out, we might not see that hand because things have become so tense.” He spoke alongside Finance Minister Enoch Godongwana, who said that US Treasury Secretary Scott Bessent attended some of the meetings, which took place late on Wednesday and early on Thursday. Neither spoke in detail about what Bessent said. The South African officials said they decided before the talks not to issue a formal communique at their conclusion, with Godongwana adding that was due to the wide divisions between various countries over how to handle the trade disputes.Stock and bond markets have been rattled this month — and the International Monetary Fund slashed its forecasts for the global economy — after US President Donald Trump announced sweeping tariffs on almost all countries. He’s paused some of them as governments rush to negotiate with the US to ease the levies.Since Monday, US equities have recovered some of their losses, partly because Bessent spoke of the need to ease a trade stand-off with China. On Thursday, Trump said his administration was talking with Beijing, though Chinese officials earlier denied any negotiations are happening.Godongwana told reporters that a rejection of protectionism and commitment to a multilateral trade system “was broadly the main principle accepted in the meetings” in Washington.Still, Kganyago, the governor, said he doubted trade tensions would ease soon.“In an environment where every country is negotiating bilaterally, these things could take a lot of time,” he said. “We cannot let uncertainty become the new certainty.”

G20 chair Kganyago says global trade tensions are ‘so elevated’

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G20 chair Kganyago says global trade tensions are ‘so elevated’

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