Several G20 Countries Reject US Position on Excess Industrial Capacity

A number of G20 countries have rejected the United States' position on excess industrial capacity, according to a report from CNBC, in a dispute that comes amid new US tariffs targeting dozens of trading partners.

The disagreement follows the Trump administration's decision to impose tariffs of 10% or 12.5% on goods from 59 countries, a move framed in Washington as a response to global oversupply in certain industrial sectors. According to the report, the rejection of the US stance came from the vast majority of G20 members, suggesting broad international pushback against the rationale behind the tariffs.

Excess industrial capacity has been a recurring point of friction in global trade discussions, with the United States and some allies long arguing that certain countries, particularly China, have built manufacturing capacity far beyond domestic demand, leading to a flood of low-priced exports that undercut producers elsewhere. Critics of the US position argue that broad tariffs aimed at addressing this imbalance can end up penalizing a wide range of trading partners not directly responsible for the oversupply.

The G20, which brings together the world's major economies, has historically served as a forum for coordinating responses to global economic challenges, though consensus has become harder to reach in recent years amid rising trade tensions. The scale of the rejection described in the report points to significant friction within the group over how to handle disputes about industrial overcapacity and tariff policy.

It was not immediately clear from the report which specific countries led the pushback or what alternative approach, if any, they proposed. The US tariffs affecting the 59 countries named in the report remain in place.

Discussions over trade imbalances and industrial capacity are expected to continue at future G20 gatherings as member states seek a more unified approach to the issue.