DOJ Ordered to Freeze Antitrust Work With Canada as Trade Tensions Intensify

The Justice Department's antitrust division was directed this week to pause all cooperation with the Canadian government, according to internal emails reviewed by The Wall Street Journal — a dramatic escalation in the trade war between the two longtime allies. But the DOJ quickly disputed the report, saying the "alleged direction was never given to anyone" and that officials had simply asked to postpone a single meeting.

WASHINGTON – The U.S. Justice Department's antitrust division was instructed earlier this week to halt all work with the Canadian government as the trade dispute between the neighboring nations intensifies, according to a report from The Wall Street Journal .

In a Wednesday email with the subject line "Pause on Canada," Lynda Marshall, chief of the antitrust division's international section, ordered officials to stop all cooperation on cases and engagement on policy issues with Canadian authorities, according to emails reviewed by the Journal . She provided no reason for the directive but said she would "circle back if the guidance changes" .

On Friday, section chiefs in the division were also instructed in another email to provide lists outlining areas of cooperation with Canada by the end of the day .

A Rare Break From Decades of Cooperation

Antitrust officials told the Journal that such a directive has almost no precedent . The Justice Department has long maintained cooperative relationships with competition regulators in other countries, even those with which the U.S. does not have friendly relations .

The U.S. and Canadian antitrust agencies have multiple agreements in place to strengthen bilateral cooperation . Since the 2000s, the two countries have worked together on major investigations into price-fixing in the auto parts and air cargo industries, and have long coordinated on merger reviews spanning the technology and aerospace sectors .

DOJ Denies the Report

The Justice Department pushed back against the Journal's reporting, calling it false in an emailed statement to Reuters .

"The alleged direction was never given to anyone," the department said . Instead, the division was asked to "temporarily hold off on a scheduled meeting on a specific investigation until the DOJ's antitrust team had more time to prepare" .

The White House referred questions to the Justice Department, and the Canadian government did not immediately respond to requests for comment .

A Trade War on Multiple Fronts

The reported pause in antitrust cooperation comes as the U.S.-Canada trade relationship has deteriorated sharply since President Donald Trump returned to the White House in early 2025 .

Trade talks between the two countries broke down in late August, and the Trump administration imposed new 50% tariffs on approximately $20 billion worth of Canadian goods, which took effect last month . Canadian Prime Minister Mark Carney responded by announcing retaliatory tariffs set to begin September 8, vowing to "match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses" .

The dispute has now spawned tariffs on tens of billions of dollars in cross-border trade .

A Feud That Goes Beyond Tariffs

Trump has frequently suggested that Canada should become an American state . Most recently, the president signed an executive order directing that Lake Ontario be renamed "Lake America" for U.S. federal government purposes — a move that does not affect what Canada or anyone else calls the lake but has further inflamed tensions .

Carney has criticized the provocative rhetoric from U.S. officials, saying it does nothing to resolve the outstanding trade dispute .

The Bottom Line