1. America’s closest allies are convening in France under the weight of President Trump’s tariff war with China, and tensions are simmering.

As he arrived in Biarritz for the annual meeting of the Group of 7 powers, Mr. Trump, above with Prime Minister Boris Johnson of Britain, asserted that he had the authority to make good on his threat to force all American businesses to leave China. Today, he admitted to having “second thoughts” about escalating the trade war, but White House officials said his regret was only not acting even more forcefully.

The dizzying round of tit-for-tat tariff increases between the U.S. and China, and Mr. Trump’s accusation that his own Federal Reserve chief was an enemy of the U.S., created political chaos that our economics reporter says is threatening the world economy.