The ongoing G20 finance ministers and central bank governors meeting in Durban, South Africa, is facing significant challenges due to the absence of U.S. Treasury Secretary Scott Bessent and growing tensions between BRICS nations and Western economies.
Scott Bessent’s decision to skip the summit, for the second time this year, has raised concerns over the United States' commitment to multilateral financial cooperation. Instead of attending the Durban meeting, Bessent is scheduled to participate in the World Expo in Japan later this week. The U.S. delegation at the G20 is being led by Michael Kaplan, Acting Undersecretary for International Affairs.
The absence is widely viewed as a diplomatic snub and comes at a time when global economic unity is under strain. Bessent’s no-show follows controversial trade proposals announced by former President Donald Trump, including blanket 10 percent tariffs on all U.S. imports and significantly higher duties on specific sectors. These include 25 percent tariffs on autos, up to 50 percent on steel and aluminum, and as high as 200 percent on pharmaceuticals from certain countries. A list of 25 nations, including several BRICS members, could be subject to the additional tariffs by August 1.
These developments have increased friction between G20 and BRICS countries, eight of which are part of both groups. The overlapping membership is complicating policy coordination and fueling concern over the fragmentation of global financial governance.
The African continent, which hosts this year’s G20 under South Africa’s leadership, is grappling with a growing debt crisis. Sub-Saharan African nations collectively owe about 800 billion dollars, or nearly 45 percent of their GDP. With traditional lenders such as China reducing new financing commitments and Western aid facing budget constraints, the region faces an estimated 80 billion dollar funding shortfall. Calls for greater transparency in loan terms and sustainable financing mechanisms are central themes of the Durban discussions.
South Africa, under the presidency of Cyril Ramaphosa, is promoting the G20’s 2025 theme of “Solidarity, Equality, Sustainability.” The country aims to push forward climate finance initiatives and equitable development strategies. However, the absence of key leaders like Bessent and growing protectionist sentiments threaten to derail progress on these fronts.
Efforts by the Financial Stability Board to advance climate-related financial disclosure frameworks are also in jeopardy without strong backing from major economies like the United States. The final communiqué expected at the end of the meeting may struggle to present a unified front on critical issues.
As the G20 meeting continues, attention will turn to how remaining member states respond to U.S. disengagement, the future direction of global trade policies, and whether emerging economies can gain stronger representation in shaping the international financial agenda.