FINANCE ministers and central bankers from the world’s largest economies said Sunday that heightened trade and geopolitical tensions risk derailing global growth and called for greater dialogue, according to the final communique of a G20 meeting.

The weekend talks in Buenos Aires come amid an escalation in rhetoric in the trade conflict between the United States and China, the world’s largest economies, which have so far slapped tariffs on US$34 billion worth of each other’s goods.

U.S. President Donald Trump raised the stakes Friday with a threat to impose tariffs on all US$500 billion of Chinese exports to the United States.

The communique noted that global economic growth was robust and unemployment was at a decade low. However, it warned that growth was becoming less synchronized among major economies and downside risks over the short and medium-term had increased.

“These include rising financial vulnerabilities, heightened trade and geopolitical tensions, global imbalances, inequality and structurally weak growth, particularly in some advanced economies,” said the communique.

The ministers reaffirmed the conclusions from G20 leaders at their most recent summit in Hamburg last July, when they emphasized that trade was an engine of global growth and that multilateral trade agreements are important.

“We...recognize the need to step up dialogue and actions to mitigate risks and enhance confidence,” the final communique said. “We are working to strengthen the contribution of trade to our economies.”

The language marked an incremental toughening from the communique issued at the previous ministerial meeting in March, which had only noted that the leaders “recognize the need for further dialogue.”

Trump has angered European allies by imposing import tariffs of 25 percent on steel and 10 percent on aluminum, causing the European Union to retaliate with similar amounts of tariffs on Harley-Davidson Inc. motorcycles, bourbon whiskey and other products.

Trump, who frequently criticizes Europe’s 10 percent car tariffs, is also studying adding a 25 percent levy on automotive imports, which would hit both Europe and Japan hard.

“We were in mutual listening mode and I hope that this is the beginning of something,” European Commissioner for Economic and Financial Affairs Pierre Moscovici told reporters Sunday, referring to the G20 negotiations. “But still the positions are not similar.”

U.S. Treasury Secretary Steve Mnuchin has sought to use the meeting to woo Europe and Japan with the offer of free trade deals, as Washington tries to gain leverage with allies in its dispute with China.

But French Finance Minister Bruno Le Maire rebuffed the overture Saturday, saying that the United States must drop its tariffs before any talks could start.

European Council representative to the G20 Hubert Fuchs struck a more cautious tone Sunday, saying the United States’ removal of tariffs was not a necessary precondition for trade talks to begin and he welcomed the candid approach adopted by Mnuchin at the meeting. (SD-Agencies)