World's finance leaders bow to trump's demands by dropping free trade

The communique of G20 finance ministers and central banker chiefs today backtracked on a pledge to reject protectionism and endorse free trade as they made only a token reference on the need

to strengthen the contribution of trade to the economy. G20 finance chiefs in Baden-Baden, Germany, also walked back on a commitment to support climate change finance, an outcome which had

been anticipated after US President Donald Trump has repeatedly called climate change a “hoax”. The move marked the new US administration’s biggest clash yet with the international

community. Speaking on the sidelines of the meeting, delegates said that the US was holding out on key issues, unwilling to compromise and essentially torpedoing a deal, as it requires all

members to sign up. Mr Trump has already pulled out of a key trade agreement and proposed a new tax on imports arguing that certain trade relationships need to be reworked to make them

fairer for US workers. G20 financial leaders, however, reaffirmed their commitment to refrain from competitive currency devaluation, a key agreement as the US has repeatedly complained that

some of its trade partners are using artificially devalued currencies to gain a trade advantage. The US President’s pro-protectionist values have become a serious concern for trading

countries who fear they will get a bad deal with the US. BUDGET PROPOSAL: WHAT DOES TRUMP WANT TO CUT? Theresa May, however, said she was confident the UK will get a good trading deal with

the US post-Brexit after she was the first world leader to meet him after becoming president in January. A leading world economics expert last month said much of Mr Trump’s protectionist

policies were more “rhetoric” than “reality”. Gerard Lyons, co-founder of Economists for Brexit, told Express.co.uk the US leader’s calls to “put America first” should be taken with a pinch

of salt when it comes to the economy. Getty Donald, Melania and Barron Trump flew to Florida yet again for the weekend The economist said it would not be in America’s interest to pursue a

“truly protectionist” agenda. The comments came after President Trump vowed to make significant changes to US trade and immigration policy, threatened to impose steep tariffs on imports and

proposed hefty tax cuts. He said: “If the US becomes truly protectionist then that will not be good for the US economy itself.  “But I think we need to separate some of the rhetoric from the

likely reality of policy. “The President seems to have surrounded himself with some very good businesspeople. Therefore I think the policy will be one of talking about putting America

first. “And I would actually say, ever since I’ve been in business every US president has always put America first. They might not have talked about it in the same terms.” Mr Lyons, who was

chief economic advisor to Boris Johnson when he was the Mayor of London, said it was vital the UK had strong relationships with big economies post-Brexit. He added: “Clearly, if we’re

leaving the EU, as the Prime Minister’s touched on, we need to be global in our perspective.”