As the G20 finance ministers and central bank governors convened in Durban on 17 July 2025, South Africa called for renewed multilateral cooperation amid escalating global trade tensions. The summit, held under South Africa’s presidency and its guiding motto “Solidarity, Equality, Sustainability,” seeks to address pressing global challenges such as restrictive trade policies, capital costs, and financing for climate-related initiatives.
The Durban meeting unfolds against the backdrop of renewed tariff threats from U.S. President Donald Trump, whose administration has proposed sweeping levies, including a baseline 10% tariff on all U.S. imports and sharply higher duties on specific goods such as steel (up to 50%), automobiles (25%), and potentially pharmaceuticals. These new tariffs are scheduled to come into effect on 1 August and include targeted measures on over 20 countries. Additional proposals have signalled further 10% tariffs on members of the BRICS bloc—eight of which are also part of the G20—raising concerns about deepening fragmentation in global trade governance.
South Africa’s Finance Minister, Enoch Godongwana, in his opening remarks, emphasised the imperative for coordinated global leadership, stating:
“We have a critical role to play in revitalising and strengthening multilateralism by fostering inclusive dialogue, reinforcing rules-based cooperation and driving collective action in global challenges that no country can solve alone. The need for bold cooperative leadership has never been greater.”
The G20, originally established as a forum to coordinate economic responses during the 2008 financial crisis, has faced mounting difficulties in forging consensus in recent years. Geopolitical tensions—particularly the ongoing war in Ukraine and sanctions on Russia—have further strained the group’s cohesiveness. South Africa’s goal of delivering a joint communiqué during its G20 presidency is ambitious, especially as internal divergences deepen.
U.S. Treasury Secretary Scott Bessent did not attend the meeting—his second absence from a South African-hosted G20 summit this year. He was also notably absent from the February gathering in Cape Town. The U.S. delegation is instead being led by Michael Kaplan, the acting Undersecretary for International Affairs. Despite the absence of senior figures from the U.S., India, France, and Russia, South African Reserve Bank Governor Lesetja Kganyago underscored the significance of mandated representation rather than mere presence:
“What matters is, is there somebody with a mandate sitting behind the flag and are all countries represented with somebody sitting behind the flag?”
While Washington is expected to assume the G20 presidency in late 2025, details regarding its strategic intentions remain limited. However, U.S. sources suggest a likely reduction in non-financial working groups and a streamlining of summit operations.
Concerns over the broader global economy also featured prominently in the discussions. Germany’s Bundesbank President, Joachim Nagel, cautioned that the proposed tariffs could significantly dampen economic growth across Europe. Germany, the continent’s largest economy, is currently forecast to grow by 0.7% in 2026, but Nagel warned that this projection could be nullified if the mooted 30% tariffs are enacted:
“If tariffs materialise in August, a recession in Germany in 2025 cannot be ruled out.”
Nagel also expressed alarm over President Trump’s continued criticism of U.S. Federal Reserve Chair Jerome Powell, warning of the risks associated with undermining central bank independence—a principle long considered foundational to macroeconomic stability.
The G20’s potential to issue a collective communiqué—its first in over a year—is being viewed as a litmus test for the group’s functional relevance. South Africa’s Director General of the National Treasury, Duncan Pieterse, reaffirmed Pretoria’s intention to foster consensus before the close of the two-day summit.
With the G20 increasingly seen as emblematic of shifting global power dynamics, South Africa’s stewardship of the group represents both a diplomatic opportunity and a formidable challenge. As tensions rise, the world’s major economies will need to decide whether they are willing to prioritise cooperative policy solutions or continue down the path of unilateralism.
For more on South Africa’s G20 presidency, visit the official G20 South Africa website.
