Nearly every session at this week’s Group of 20 meeting of finance ministers and central bankers in Asheville, N.C., opened with Treasury Secretary Scott Bessent touting the strength of the U.S. economy under President Trump and encouraging other nations to emulate America’s model. While the administration’s message was consistent, many of America’s traditional allies were not receptive, offering pointed criticism of policies they argue have disrupted global markets and hampered growth.
European, Canadian and other friendly governments raised several grievances. They expressed concern over the ongoing conflict with Iran, which has roiled energy markets and shipping lanes. Officials also questioned Mr. Bessent’s abrupt decision to sell U.S. euro holdings to bolster Japan’s currency last month, viewing the move as a unilateral action that weakened Europe’s exchange rate without prior coordination. Trade tensions with Canada were another flashpoint, with Canadian Finance Minister François‑Philippe Champagne vowing to defend his country’s workers and industries in the face of escalating tariffs.
The disagreements, though largely polite, underscored a widening rift. European leaders, in particular, feel that the Trump administration’s approach—characterized by aggressive tariffs, an “America‑first” regulatory rollback, and a heavy reliance on fossil fuels—has eroded confidence in global trade and impeded economic expansion. The philosophical divide extends to technology and energy policy: while the United States has slashed regulations on artificial‑intelligence development and promoted fossil‑fuel production, many European nations remain cautious about AI, favor stricter environmental standards, and are investing in renewable energy to build a competitive tech sector.
“There are clear differences, and we will handle it that way,” German Vice Chancellor Lars Klingbeil told reporters in Asheville, citing tariff disputes that he said were “ultimately harming everyone involved.” German economists note that the combination of the Iran war and U.S. tariffs has dampened what would otherwise be Germany’s strongest growth year since 2022. Similarly, the International Monetary Fund has warned that the conflict with Iran has slowed overall global growth, even as the U.S. is projected to expand at more than double the rate of the eurozone or Canada.
The summit also served as a showcase for the administration’s emphasis on public‑private partnership. Mr. Bessent invited senior U.S. executives from banking, cryptocurrency and other sectors to meet with visiting officials, an arrangement praised by JPMorgan Chase CEO Jamie Dimon as reinforcing America’s status as the world’s preeminent economy. A “fireside chat” with Fox Business host Larry Kudlow further highlighted the administration’s narrative of economic superiority.
Critics, however, see the event as a largely performative effort. “Despite U.S. strong‑arm tactics, even traditional U.S. allies among the G20 are clearly and publicly at odds with the Trump administration’s priorities,” said Eswar Prasad, a Cornell economist and former IMF China chief. Central bankers, including Joachim Nagel of Germany, expressed disappointment over the lack of coordination on the euro‑sale maneuver, noting that the move undermined trust among partners.
The most overt confrontation unfolded with Canada. After Mr. Bessent dismissively remarked in a CNBC interview that “you can’t be in a tit‑for‑tat with someone who’s 13 times larger than you are,” Champagne countered that Canada would “defend our workers, our industries and Canada.”
The summit’s outcome reflects a broader tension: while the United States continues to outpace many peers in growth, its unilateral policies and diplomatic tone are straining long‑standing alliances. European and Canadian officials say they remain committed to navigating the challenges, even as they warn that uncertainty generated by the war, tariffs and competitive pressures from China threatens global stability.
Updated — Sept. 1, 2026, 6:03 p.m. ET
Alan Rappeport contributed reporting from Washington.
