Good morning. Canadian Prime Minister Mark Carney is squaring off with President Trump, vowing to escalate a trade war between the two countries after negotiations spectacularly collapsed over the weekend.

The whole "artificial" deadline was vintage Trump: Create a ticking clock that pressures your adversary to blink. So Trump created a deadline for imposing new tariffs on Canada. Canada didn't agree to what the White House wanted on trade, and the tariffs went into effect after midnight Friday.

What exactly fell apart in the talks remains unclear (there is a ton of finger-pointing, and not a lot of commonly agreed upon facts).

Regardless, Canada didn't flinch. And this is becoming a theme.

"You're at war when you get attacked," Carney told reporters, "and we got attacked."

At the beginning of 2025, countries (and companies!) were falling all over themselves to reach agreements with the White House. Trump claimed Japan, South Korea and the European Union all made agreements to invest gigantic sums of money in the U.S. in order to avoid tariffs (the details at the time were fuzzy).

Countries aren't buckling like that anymore.

Trump has tried military threats and deadlines against Iran, and they are often ignored by Tehran. And, a number of times, Trump had backed off before launching the attack he said was looming. Then there was the Trump-announced peace deal between Israel and Hamas announced a few weeks ago that...neither side is abiding by.

Being a lame-duck president is tough sledding. Some of Trump's biggest priorities-creation of a White House ballroom, the Iran War and the trade war with Canada-aren't things that Republicans are campaigning on in the midterm election. So he doesn't have a lot of political cover or voter energy behind him at the moment. This weakens his leverage. He has shown time and again, though, that he believes he can create his own leverage. Other countries are watching, and voters are too.

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People and Policies I'm Watching

Bessent news conference: Treasury Secretary Scott Bessent is expected to unveil details about new economic sanctions against Iran.

Trump's Monday: Trump is scheduled to take part in two policy meetings. At 2:30 p.m. ET, the president will participate in a Rose Garden event.

What I'm Following

The man driving a campaign to integrate religion into public education. David Barton, a former math and science teacher, has positioned himself as the intellectual architect of a movement advancing a conservative agenda in policy and education. Barton and his nonprofit have helped facilitate legislation in more than a dozen states to mandate the display of the Ten Commandments in classrooms.

How Kevin Warsh formed his views on inflation. Many on Wall Street applauded Kevin Warsh's appointment as Federal Reserve chairman, seeing his record from 15 years ago as proof he is instinctively tough on inflation. But there is an alternative interpretation. Warsh might have a more unconventional view of what causes inflation, rooted less in demand-side indicators such as unemployment and more in the supply side and government policies.

Trump intervenes in antitrust case against Live Nation. The Justice Department was set to wage a legal battle against concert promoter Live Nation. Then Trump got involved, urging a settlement. A deal was reached that kept the company intact. Many DOJ officials regarded the political interference in the Live Nation case as extreme even for an administration in which the president has openly pressured law-enforcement officials to pursue perceived enemies and pardoned allies.

What Else Is Happening

By making inroads in some traditionally red states, Democrats have a chance to recapture the majority in the Senate.

A Senate race in Iowa pits a Republican representative and former news anchor against a two-time basketball Paralympic gold medalist campaigning as a moderate Democrat.

After chastising Trump for shredding U.S. climate policies, Europe, the U.K. and Canada are walking back their own environmental regulations.

What I'm Reading

'I Worked for Bernie Sanders. The Democratic Party Is Turning Against the Jews.' (the Free Press)

Are Canadians Still 'Elbows Up' on the Trade War? (Toronto Star)

Iran's Top Civilian Leaders Push for Cutting a Deal With Trump (New York Post)

About Me

I'm Damian Paletta, The Wall Street Journal's Washington coverage chief. I've covered Washington for 22 years as a reporter and editor. I've covered the White House, Congress, national security, the federal budget, economics and multiple market meltdowns. WSJ Politics brings you an expert guide to what's driving D.C., every weekday morning. Send your feedback to politics@wsj.com (if you're reading this in your inbox, you can just hit reply). This edition was curated and edited in collaboration with Joe Erwin and Yolanda McBride. Got a tip for us? Here's how to submit.