MILWAUKEE — G20 trade talks concluded Thursday without agreement on how to address excess capacity, the practice of flooding markets with low-priced goods that U.S. officials say harms American manufacturers and workers in Hawaiʻi and across the country.
U.S. Trade Representative Jamieson Greer said discussions were constructive but fell short of consensus on excess capacity.
“Nearly all countries agreed that this is an issue that required action. And nearly all countries agreed that our current system of trade remedies and responses is inadequate to solve this problem,” Greer said.
The White House has accused multiple trading partners of producing more goods than global demand supports, pushing down prices and distorting competition. Officials view China as the primary source of the problem, though investigations have also been opened into countries ranging from Norway to Bangladesh.
Beyond Chinese steel, the administration has pointed to autos, batteries, paper, and semiconductors as sectors affected by overproduction, which it says has eroded U.S. competitiveness.
The Milwaukee meeting of the G20, a forum for major industrialized and emerging economies, offered no progress on the most immediate dispute between the United States and Canada.
Tensions have risen since summer, when President Donald Trump imposed 50% tariffs on roughly $20 billion in Canadian goods, prompting Ottawa to respond with its own levies. The row intensified this week when Trump blocked nearly $1 billion in additional Canadian imports, including alcoholic beverages, dairy products, and motorcycles.
“The reality is there are a handful of outstanding issues that are quite difficult to resolve,” Greer said.
Canada, a close U.S. ally and the largest buyer of American exports, has emerged as an unexpected focal point in the trade clash. Canadian trade minister Maninder Sidhu urged cooperation, saying the two countries face similar challenges and should work together to find solutions.
G20 trade talks also stall on forced labor
Negotiators also failed to land an agreement on forced labor standards. The Trump administration has cited the issue in imposing double-digit tariffs on more than 60 countries, covering about 99% of U.S. imports.
The scope of the duties suggests they may also serve to replace broad tariffs enacted last year that were struck down by the U.S. Supreme Court in February.
“Believe it or not, we have countries in the G20 that do not want to commit to having a prohibition on the import of goods made with forced labor,” Greer said. “At the end of the day, we all know forced labor is wrong, and it will distort our markets, and we won’t have it.”
The lack of progress leaves key trade disputes unresolved as businesses, from mainland factories to Hawaiʻi retailers, navigate ongoing uncertainty over tariffs and supply chains.
Sedensky reported from New York.
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