Trump tariff threats risk triggering ‘spiral of escalation’ in world economy, says IMF

January 19, 2026

Fund warns rising geopolitical tensions could have ‘material impact’ on global growth and investment

Donald Trump’s tariff threats over Greenland risk triggering a “spiral of escalation” that would damage the world economy and lead to a sharp sell-off in financial markets, the International Monetary Fund (IMF) has said.

In an update as Trump threatened to impose tariffs on Nato allies opposed to his ambition to take over the Arctic territory from Denmark, the Washington-based fund said a renewed eruption in trade tensions was among the biggest risks to global growth in 2026.

Source: www.theguardian.com

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