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

Container ships load and unload at Felixstowe port in England. The UK was one of eight European countries threatened with new tariffs. Photograph: Dan Kitwood/Getty Images

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.