We begin with the trade situation around the world. Beijing says it will place an additional 25 percent tariff on American goods worth some 50 billion US dollars, after the US president imposed tariffs of equal value on Chinese goods. China is not the only target. Donald Trump's European allies are also bearing the brunt of his trade decisions. CGTN's Wang Tongxuan has the details.

China accused the United States of firing the first shot on Friday after the White House said it would impose 25% tariffs on $50 billion US dollars worth of Chinese goods. 

The move confirms a threat first made by President Trump in March and follows several rounds of trade talks between the two sides. A truce was announced in May, but it proved to be short-lived. US tariffs on billions of dollars worth of Chinese goods will apply to roughly 1,100 exports ranging from dishwashers to aircraft tyres.

China's countermeasure will be rolled out in two waves-- tariffs on 545 US items worth 34 billion US dollars— including agricultural products, automobiles and seafood — starting on July 6th. Tariffs on another 114 items, including chemicals, medical equipment and energy products, will kick-in later.

Trump has long been complaining about the trade deficit saying "the U.S. has been ripped off by other countries for years." New US tariffs on steel and aluminum shocked America's allies, with many set to retaliate. British Prime Minister Theresa May called it "unjustified and deeply disappointing". French President Emmanuel Macron said it's "illegal". And this photo says it all--a deeply divisive G7 summit.

JUSTIN TRUDEAU CANADIAN PRIME MINISTER "Canadians are polite, we are reasonable, but we will also not be pushed around."

ANGELA MERKEL GERMAN CHANCELLOR "For us, it was important that we have a commitment to a rule-based trade order, that we continue to fight against protectionism and that we want to reform the World Trade Organization."

International Monetary Fund director Christine Lagarde also weighed in.

CHRISTINE LAGARDE IMF MANAGING DIRECTOR "Unilateral trade actions can be disruptive and may prove counter-productive to the functioning of the global economy and trading system. As I've said before, the so-called 'trade war' driven by reciprocal increases in import tariff gives no winner. And we find generally losers on both sides." WTX,CGTN