The International Monetary Fund has warned that US economic policies under incoming president Donald Trump could hit the rest of the world and ultimately backfire on the US. The IMF says a threatened wave of tariffs could make trade tensions worse,

The International Monetary Fund expects the world economy to grow a little faster and inflation to keep falling this year.

The U.S. economy has separated itself from the global pack — and its lead could widen in the new year. That’s the upshot of a new forecast by the International Monetary Fund, the organization created at the end of World War Two to support the global economy.

The UK is also predicted to grow faster than France and Germany by the IMF, but it warns of a hit to its forecasts should a new Trump trade war materialise.

Donald Trump’s plans for higher tariffs, lower taxes and curbs on immigration risk reviving inflation and preventing the Federal Reserve from cutting interest rates, the IMF has warned. Unveiling forecasts that predicted faster-than-expected growth for the US economy,