The International Monetary Fund has warned US President Donald Trump's trade dispute with China is putting global growth at risk and urged governments to start putting money away to protect against a downturn.

In a report due to be released on Tuesday, the Washington-based global financial watchdog described Mr Trump's policies as "protectionist" and said "retaliatory measures by trading partners have increased the likelihood of escalating and sustained trade actions".

The IMF's comments come as Trade Minister Steve Ciobo heads to London to shore up trade deals outside the US and local analysts canvass the possibility of an interest rate cut from its current record low of 1.5 per cent to cope with an economic downturn.

Maurice Obstfeld at the International Monetary Fund. Credit:Bloomberg

Mr Ciobo said a free trade agreement with a post-Brexit UK would be "underpinned by our shared heritage, common values, and closely aligned strategic outlook".