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The Washington Times

Welcome to On Background, the politics newsletter that brings you insights from Capitol Hill to the campaign trail from veteran journalists at The Washington Times.

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The trade war with Canada has gone from a simmer to a full boil.

Talks collapsed, and the U.S. responded by imposing 50% tariffs on at least $20 billion in Canadian imports.

“Canada wants the benefits of being a State, without being one!!! They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!” President Trump vowed.

Prime Minister Mark Carney said Canada will impose dollar-for-dollar retaliatory tariffs on U.S. goods beginning Sept. 8. The tariffs will target steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Mr. Carney blamed U.S. negotiators for introducing last-minute changes, among them limitations on Canada’s ability to secure trade deals with other countries.

In an escalation, Mr. Trump threatened to impose a steep 50% tariff on all Canadian cars, trucks, auto parts and steel. They would go into effect in January and would double the tariffs on auto imports.

Mr. Trump said new tariffs were necessary to close the $60 billion budget deficit that exists between the two neighbors.

Canada also said it will ramp up existing tariffs on select sectors, such as steel and aluminum, from 25% to 50% to match U.S. rates.

“We stand united in our response, we stand united in our resolve, we stand united in fighting for Canada,” said Francois-Philippe Champagne, minister of national revenue for Canada. “When Canadians stand together, nothing can stop us.”

The fight has grown so petulant that Mr. Trump renamed Lake Ontario, one of the Great Lakes on the border, as “Lake America.” That’ll show ‘em.

Consumers on both sides likely will see higher prices on certain goods, and that’s particularly worrisome news for Republican candidates this fall, something that Mr. Carney seems eager to leverage.

In the courts

An election worker sorts vote-by-mail ballots at the Miami-Dade County Supervisor of Elections Office for the Florida primary election in Doral, Fla., Tuesday, Aug. 18, 2026. (AP Photo/Lynne Sladky)

Policing mail-in ballots. The Supreme Court gave Mr. Trump leeway to proceed with plans for the U.S. Postal Service to decide which mailed ballots to deliver.

The justices, in an unsigned order, said a district court that tried to stop Mr. Trump was meddling in internal decisions of the executive branch, preventing the president from trying to carry out his election-integrity agenda.

“The government is likely to prevail on the merits of its argument that the district court lacked jurisdiction to enter the judgment,” the court said.

The case will continue to develop in lower courts, but it does give the president some room to run.

In an executive order in March, Mr. Trump directed the Department of Homeland Security to come up with lists of eligible voters for each state, excluding noncitizens and others who lacked qualifications. He then directed the postal service to deliver mailed ballots only to voters who were on the approved lists, seeking to block others from using the mail to cast illegal ballots in November’s midterm elections.

Congressional Democrats and voting rights advocates mounted new challenges to the plan, saying the proposal turns the U.S. Postal Service “into a national gatekeeper for mail voting in federal elections.”

“But neither the Constitution nor Congress has given USPS any power to prescribe the rules around mail voting,” the voting groups said in their new filing.

Meta will pay states up to $17.1 billion and implement new safety features for teen social media users to settle a landmark case that accused the tech giant of pushing harmful content to children.

California, Virginia, Indiana, Kentucky and New Jersey were among 33 states that sued Meta in 2023 over its Facebook and Instagram platforms, saying the Big Tech giant knowingly features addictive and harmful content while shielding that information from the public.

Virginia is slated to receive $353 million, state Attorney General Jay Jones said.

“For years, Meta intentionally deceived the public about the addictive and harmful design features that have wreaked havoc on youth mental health. I am elated to announce a settlement agreement that will put an end to these dangerous practices and deliver meaningful relief that will protect children from online harm,” Mr. Jones said.

The agreement requires Meta to implement new safety features for children who use Instagram and Facebook, among them time limits aimed at stopping “endless scrolling.”

The agreement also requires Meta to block children from Instagram and Facebook from midnight to 6 a.m. and limit access to the platforms during school time, among other changes.

Indiana is set to receive up to $419.4 million in the settlement, Attorney General Todd Rokita said. He called the new safety requirements “groundbreaking changes” that will reduce compulsive use and resulting anxiety and depression among teen users.

One of the new safety requirements will limit beauty filters and visible “like” counts that harm the mental health of kids and teenagers.

An independent auditor and the 47 states included in the settlement will monitor the implementation and efficacy of the new safety features, he said.

While lawmakers and advocates praised the settlement, they said Congress still needs to pass long-awaited legislation to protect kids online.

In the Trump administration

Treasury Secretary Scott Bessent speaks at a news conference, Monday, Aug. 24, 2026, at the Treasury Department in Washington. (AP Photo/Julia Demaree Nikhinson)

Silver lining playbook. Mr. Trump’s success in sealing the southwestern border has a big silver lining — he’s starving the smuggling cartels of a source of income, according to a Treasury Department analysis.

FinCEN, short for the Financial Crimes Enforcement Network, crunched the numbers on bank reports of suspicious transactions linked to suspected human smuggling. They spotted 67,540 reports, totaling nearly $5 billion.

But the vast majority of those occurred in 2023 and 2024, under President Biden, who averaged more than 7,000 reports each quarter.

By the last half of 2025, when Mr. Trump’s policies had fully kicked in, fewer than 2,000 reports were flagged each quarter.

Treasury Secretary Scott Bessent said the numbers prove Mr. Trump has put the smugglers “on the defensive.”

“The Trump administration is restoring border security and disrupting transnational criminal organizations to keep America safe,” he said as he announced the FinCEN study on social media last week.

Immigrants have been known to pay up to $20,000 to be smuggled into the U.S., with the cartels taking a cut.

The Supreme Court’s decision striking down Mr. Trump’s first attempt at global tariffs will sock it to the U.S. Treasury, blowing a nearly trillion-dollar hole in the budget over the next decade, according to the Congressional Budget Office.

Invalidating the tariffs means the government will take in about $700 billion less in customs duties. That includes refunds on the $166 billion in tariffs already collected before the justices struck them down.

And since the government is already running deficits, the $700 billion will lead to an extra $200 billion in debt service, leaving a total hole of roughly $900 billion that wasn’t there when CBO did its last projection in February.

On the campaign trail

Democratic nominee for U.S. Senate Abdul El-Sayed speaks at a news conference at the base of the Spirit of Detroit monument in Detroit on Wednesday, Aug. 19, 2026. (AP Photo/Paul Sancya) **FILE**

Don’t forget the free unicorns. Free healthcare. Free childcare. Free preschool. Free college. Free transportation. Housing for all. And how about months of paid family and sick leave?

Democrats running under the socialist banner are dreaming up a massively expanded welfare state in America aimed at appealing to the working class but carries an equally massive price tag.

“There is no universe in which you could implement the [Democratic Socialists of America] agenda and not raise taxes by a massive amount on most Americans,” Adam N. Michel, director of tax policy studies at the libertarian Cato Institute, told The Washington Times.

Democratic primary voters, oblivious to the cost, are gravitating toward socialist candidates in races across the country who are promising a host of cradle-to-grave freebies.

Economic analysts, however, say that even if a few of those plans become reality, the cost would far exceed revenue from taxing the rich and corporations.

Sen. Darline Graham overcame a last-minute drop in the polls and questions about her qualifications in South Carolina’s Republican Senate runoff, likely ensuring she’ll win a six-year term in November to succeed her brother, the late Sen. Lindsey Graham.

Ms. Graham defeated five-term GOP Rep. Ralph Norman with the help of Mr. Trump, who enthusiastically endorsed her and hosted a get-out-the-vote rally.

She was appointed last month by South Carolina Gov. Henry McMaster to fill the remaining five months of her brother’s fourth term. Graham, a close Trump ally, died suddenly on July 11 of an aortic dissection suffered at his Capitol Hill home.

Republican Vivek Ramaswamy, who is locked in a close race for Ohio governor against Democrat Amy Acton, is waging a sustained ad blitz to hammer her as a left-winger in a state that has trended Republican and backed Mr. Trump by double digits in the last election.

On Capitol Hill

Senate Commerce, Science, and Transportation Committee Chair Sen. Ted Cruz, R-Texas, left, talks with ranking member Sen. Maria Cantwell, D-Wash., right, before the start a hearing on Capitol Hill in Washington, Wednesday, Jan. 15, 2025. (AP Photo/Susan Walsh,File)

The old college try. Congress might intervene in collegiate athletics to set national standards for student compensation and preserve parts of the athletic conference system as states and schools struggle to govern it themselves.

Led by Sen. Ted Cruz, Texas Republican, the bipartisan legislation is dubbed the NIL bill because it would create national rules for the name, image and likeness system that pays student-athletes.

The legislation was rushing through the Senate in early August but did not make it over the finish line before lawmakers ditched out for a summer vacation. The start of the college football season seems likely to push the bill back onto the Senate agenda.

Supporters of the bill said they are aiming for a vote in September.

The core of the bill is the creation of national NIL standards, heading off a patchwork of legislation that has emerged in dozens of states.

In our opinion

Illustration on the national debt crisis by Alexander Hunter/The Washington Times

The Washington Times Editorial Board warns about the ticking time bomb that is the national debt.

Commentary Editor Kelly Sadler targets California Gov. Gavin Newsom for signing into law the Stop Nick Shirley Act, which she calls a “blatant attempt to chill news organizations from investigating and reporting on waste, fraud and abuse.”

Gerard Level reminds readers of socialism’s failed history.

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