Trade wars could shipwreck global economy, warns Mark Carney

Bank of England boss says Donald Trump's widening trade spats and Brexit uncertainty are denting growth

Trade tensions triggered by Donald Trump's tariff policies could "shipwreck" the global economy and are having a chilling effect on growth, the governor of the Bank of England has warned.

Mark Carney said on Tuesday that policymakers were underestimating the impact of the US president's trade spat with China, Mexico and the European Union. He added that trade tensions had increased the "downside risks" for a UK economy already grappling with Brexit uncertainty.