Bessent’s G20 Gamble: Rallying Allies in a Time of Global Tension

US Treasury Secretary Scott Bessent is set to host meetings with his counterparts at the Group of 20 finance ministers gathering in Asheville, North Carolina. However, the tense atmosphere surrounding renewed hostilities with Iran and escalating tariffs with Canada threatens to overshadow any progress on economic issues.

Bessent’s focus on uncontroversial topics like economic growth and debt reduction may be an attempt to divert attention from strained relationships with allies. The US has been involved in an unpopular war with Iran for six months, and its aggressive tariff policies have left major trading partners feeling bruised. Daniel Fried, a former assistant secretary of state for European affairs under George W. Bush, notes that the US may struggle to rally its usual friends and allies under these circumstances.

The G20 meetings are taking place in Asheville, which is still recovering from the devastating effects of Hurricane Helene in 2024. The natural disaster left over 250 people dead and nearly $80 billion in damage across the Carolinas and Florida. Bessent has cited Asheville’s rebuilding efforts as a symbolic backdrop for discussions about economic growth, but it seems more than coincidental that this is happening in a city still grappling with the aftermath of a major disaster.

Bessent wants other countries to help isolate Iran through economic pressure, but so far, his administration’s attempts to rally international support have been unsuccessful. China, the largest buyer of Iranian oil, remains a particular challenge, and Bessent’s insistence that “all options are on the table” in terms of sanctioning Beijing seems like an attempt to deflect criticism rather than a genuine commitment to action.

The Treasury Secretary has also signaled plans for imposing sanctions on another bank, following a familiar playbook: wielding economic power as a tool of coercion. However, this approach is unlikely to yield the desired results. As Fried noted, Bessent and his colleagues will need to take greater care in consulting with allies and partners than they have shown in recent months.

The US’s economic agenda is largely at odds with its own interests. By focusing on deregulation and energy independence, Bessent seems more concerned with catering to domestic special interests than with genuinely addressing global imbalances or promoting sustainable growth. The world has accumulated a significant amount of debt, but the US’s proposed solutions seem like a desperate attempt to grow out of this problem rather than a thoughtful approach to reform.

As the G20 meetings get underway, it remains unclear what will emerge from these talks. Will Bessent succeed in rallying his allies around his agenda, or will the tension between the US and its trading partners prove too great to overcome? The world is watching, and the stakes are higher than ever.