The International Monetary Fund has warned that rising geopolitical tensions and a possible escalation of Donald Trump’s tariff war could slow global economic growth and unsettle financial markets.
In an update to its World Economic Outlook, the IMF said renewed trade tensions, including Trump’s threats to impose tariffs on Nato allies opposing his stance on Greenland, represent one of the biggest risks to global growth in 2026. The UK is among eight European countries facing potential sanctions.
The fund cautioned that a breakdown in relations between major economies could prolong uncertainty, disrupt supply chains and affect commodity prices...