Washington, DC

1. US-Canada tensions
2. Darline Graham’s support
3. Iran war intensifies
4. Trump, Lebanon leader meet
5. Dems’ big ideas debate
6. Arizona primaries
7. AI at work spikes

PDB: State Department accuses Cuba of fueling ‘left-wing terrorism’ in US

Trump hosts House GOP at White House … Senate committee votes on Clayton nomination … WSJ: Israel believes Iran moved nuclear centrifuges inside a mountain

Trump’s Canada tariffs complicate trade talks

President Donald Trump’s additional 50% tariff on a slew of Canadian goods is likely to complicate the administration’s talks today in Mexico on the US-Mexico-Canada free trade agreement, which Trump has indicated he wants to exit. The tariffs, which officials characterized as a response to Canada’s “discriminatory” practices, affect goods ranging from wine to hockey sticks and will formally take effect in 30 days. The decision, which a senior administration official emphasized is separate from any potential wildfire-related tariffs targeting Canada, is still being digested by Republicans on Capitol Hill, some of whom saw the levies as part of a broader negotiation. “I’m not a fan of tariffs. I’m a fan of engagement. Canada, I worry they’re not engaging,” said Rep. Adrian Smith, R-Neb. And the move could be subject to legal challenges: Trump signed the tariffs pursuant to Section 338 of the Tariff Act. The official said the law “has not been used for this purpose before,” but argued that these levies fit within the confines of the statute.

— Shelby Talcott and Nicholas Wu

GOP leaders get behind Darline Graham

Trump helped draft Sen. Darline Graham into South Carolina’s Senate race; now Republicans are coalescing behind her, Semafor’s Burgess Everett reports. Three elected members of leadership — Sens. John Barrasso of Wyoming, Tom Cotton of Arkansas, and Shelley Moore Capito of West Virginia — all backed Graham yesterday, giving her a huge shot in the arm. Senate Majority Leader John Thune praised Graham, too, although he said he will hold off on making any endorsements for now. And even senators staying on the sidelines praised her, with Sen. James Lankford, R-Okla., calling her “incredibly gutsy” for stepping into her late brother Lindsey Graham’s seat. Still, she faces multiple challengers, a lightning-quick primary, and possibly a runoff. Two of her new colleagues, Rick Scott of Florida and Mike Lee of Utah, are backing one of her opponents, Rep. Ralph Norman.

Trump officials testify on Iran as war heats up

The Trump administration is further ramping up the pressure on Iran, launching another bombing campaign overnight. At this point, peace talks are not at the center of the administration’s strategy. With Trump willing to continue the conflict — yesterday, he warned that Iran “will pay” for each US soldier killed — and Iran declaring a “full-scale war,” there’s no obvious off-ramp. That could complicate the administration’s efforts to get Congress to approve its military supplemental funding request. Defense Secretary Pete Hegseth and Chairman of the Joint Chiefs of Staff Gen. Dan Caine will testify before the Senate Appropriations Committee today to make the case for that $88 billion request. They’ll also face questions on the deaths of US troops over the weekend; The Iranian missile attack that killed two US servicemembers at a base in Jordan hit troops’ housing units, The Wall Street Journal reported.

— Shelby Talcott

Lebanon’s president pushes Trump on Israel

Lebanese President Joseph Aoun will meet with Trump today at the White House, the first US visit by a Lebanese head of state in nearly 20 years, as the two seek to advance a US-brokered plan to disarm Hezbollah and secure an Israeli withdrawal from southern Lebanon. The meeting follows last week’s ambassador-level talks in Rome and Sunday’s meeting between Aoun and Secretary of State Marco Rubio. Yesterday, the State Department announced the launch of “pilot zone operations” in three southern Lebanese villages, where US-backed Lebanese Armed Forces are expected to replace withdrawing Israeli troops under the June 26 framework agreement, though only one of the sites currently has Israeli forces. Aoun plans to urge Trump to pressure Israel to implement the deal; Hezbollah’s refusal to disarm and Israel’s insistence on maintaining troops may complicate the peace push.

— Lauren Morganbesser

Kim proposes universal healthcare for kids

Sen. Andy Kim, D-N.J., is proposing universal healthcare coverage for children at birth, a move that will supercharge the debate among Democrats about what their agenda should look like heading into the midterms and 2028. Kim’s new MediKids bill would automatically enroll children in Medicaid’s early screening and preventive healthcare programs, affecting the more than 4 million uninsured children in the US. Kids’ coverage would be available until age 26, and families could opt out of the automatic enrollment. Kim said the bill is intended as a “jumping-off point” for his party’s debate about big ideas and also a major plank for when Democrats take back power. “I’m really building towards creating that very tangible, concrete idea of what we would do if we had gavels, what we would do if we had the White House back,” Kim said.

— Burgess Everett

Trump, progressives tested in Arizona

Today’s primaries in Arizona will test both the mood of frustrated Democrats and the power of Trump’s endorsement. In the Mesa-based 4th Congressional District, progressive activist Kai Newkirk is hoping to join other left-wing AI critics and beat incumbent Rep. Greg Stanton for the Democratic nomination. In the 1st Congressional District, a Democratic target that Trump won by just 3 points, national Democrats have backed former TV anchor Marlene Galan Woods over Amish Shah, who narrowly lost in 2024 to Republican Rep. David Schweikert. Now, Schweikert is running for governor against GOP Rep. Andy Biggs, who has led in public polls since winning Trump’s support. The president is also backing Mark Lamb in the race for Biggs’ seat, and former state GOP chair Gina Swoboda for Arizona secretary of state.

— David Weigel

More US employees use AI

Americans’ apprehension about artificial intelligence isn’t stopping them from using it at work. Fifty-two percent of US workers reported using AI in their jobs during the second quarter of this year, according to Gallup, including 30% who said they used it frequently and 15% who turn to it daily — a steady increase since the first quarter of 2026. Forty-seven percent of American employees now say their organization has adopted AI tools to improve operations, an increase from 41% during the first quarter, while a third haven’t incorporated it into daily work. Those who take advantage of AI in the office are most likely to use it for writing and editing or research. The figures offer a window into how AI is already transforming workplaces, as employees worry about the technology’s eventual impact on the labor market.

America’s biggest retailer is quietly getting into banking. After previous misfires in financial services, Walmart is back at it with OnePay, which has 7 million customers, $50 billion in annual payment flow — and virtually zero in acquisition costs. On this week’s episode of Compound Interest, presented by Amazon Business, OnePay CEO Omer Ismail joins Liz and Rohan to discuss why he thinks the company can succeed where other fintechs have floundered and whether the big box titan can really compete with the big banks.

Blindspot: Fetterman and Lindell

Stories that are being largely ignored by either left-leaning or right-leaning outlets, curated with help from our partners at Ground News.

What the Left isn’t reading: Sen. John Fetterman, D-Pa., criticized New York City Mayor Zohran Mamdani for musing about arresting Israeli Prime Minister Benjamin Netanyahu in response to an International Criminal Court warrant.

What the Right isn’t reading: MyPillow founder Mike Lindell isn’t currently registered to vote in the state where he’s running for governor. 

Beltway Newsletters

Punchbowl News: The White House and Sens. Cynthia Lummis, R-Wyo., and Bernie Moreno, R-Ohio, reached a deal on an ethics provision that would cover presidents in the sweeping cryptocurrency regulatory bill being debated in Congress.

Axios: President Trump is weighing two options on Iran: working toward a 10-day ceasefire to reopen the Strait of Hormuz or undertaking massive strikes on Iran with Israel “to force Tehran’s capitulation.”

Playbook: Trump has little interest in helping House Republicans pass bills that could help them in the midterms. One person close to the president characterized his engagement on Capitol Hill as “zero.”

White House

• President Trump signed an order requiring defense contractors to map critical supply chains.
• The Trump administration’s efforts to reshape the federal workforce long outlasted Elon Musk’s Department of Government Efficiency. — Bloomberg
• IRS chief Frank Bisignano, during his tenure as COO of JPMorgan, directed security staffers to spy on fellow executives. — WSJ

Congress