US Treasury Secretary Scott Bessent is pushing G7 allies to adopt a coordinated approach against China’s record trade surplus of $1.2 trillion in 2025. US tariffs have reduced the bilateral trade deficit with China to $73.9 billion in the first half of 2026, but Chinese exporters are redirecting their goods to other markets instead of reducing volumes. At the September 2026 G20 summit in Asheville, nineteen of twenty members supported language calling for the elimination of non-market policies, with China blocking a full joint communique. The G7 is also exploring alternative supply chains for critical minerals, leveraging reserves from Australia, India, and Canada to reduce Chinese dominance in rare earths. Without international coordination, Bessent’s own warnings indicate that Chinese exports will continue finding new markets despite bilateral tariff implementation.
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