G20 Finance Leaders Aim for Soft Economic Landing Amid Trade War Concerns

G20 finance leaders express optimism for a soft global economic landing while committing to resist protectionism, according to a draft seen ahead of their meeting. Concerns over a potential U.S. trade war, should Donald Trump win the upcoming election, are highlighted. The communique emphasizes tax transparency and support for WTO reforms.

Finance leaders from major economies have expressed a positive outlook for a soft global economic landing, agreeing to combat protectionism, per a G20 draft communique reviewed by Reuters. This statement comes as finance ministers gather in Washington for IMF and World Bank meetings, encouraged by central banks' inflation control efforts.

Despite optimism, concerns are rising about possible global trade conflict if Donald Trump wins the U.S. presidency and implements high tariffs on imports, disrupting trade dynamics. The draft reassures that economic resilience is stronger than anticipated, but acknowledges uneven growth posing the risk of economic divergence.

The ministers have also reiterated support for fair, sustainable trade systems centered around the WTO, maintaining their commitment to tax transparency and dialogue on taxation. Brazil's proposed global billionaire tax remains politically sensitive, with debates expected to arise if Trump gains electoral victory, potentially shifting the focus at a future G20 leaders' summit.

(With inputs from agencies.)