Scandal sheet (7)
(Other definitions for tabloid that I've seen before include "Cheap newspaper" , "Type of newspaper" , "Newspaper with half-size pages" , "Small-size newspaper" , "Popular style of newspaper, not broadsheet" .)
'scandal sheet' is the definition.
(I've seen this in another clue)
This is the entire clue.
(Other definitions for rag that I've seen before include "Practical joke" , "Bit of cloth" , "organ?" , "Cloth for wiping" , "Tatter; make fun of" .)