DOJ ordered to freeze antitrust work with Canada as trade tensions intensify

WASHINGTON — The U.S. Justice Department's antitrust division has been ordered to suspend cooperation with Canadian authorities, according to internal emails reviewed by The Wall Street Journal, a move that signals the deepening rupture between the two nations as a trade war escalates.

Lynda Marshall, who leads the division's international section, directed staff on Wednesday to halt all case cooperation and policy engagement with Canadian counterparts, the emails show. No reason was provided for the directive. Two days later, section chiefs received a follow-up instruction to compile comprehensive lists of every area where the division currently coordinates with Canada, due by end of day Friday.

The department pushed back forcefully on the reporting. In a statement, a DOJ spokesperson said the "alleged direction was never given to anyone." The department acknowledged only that the division had been 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 conflicting accounts arrive at a moment of extraordinary tension in the U.S.-Canada relationship. Since President Donald Trump returned to office in January 2025, the decades-long alliance has been strained by escalating trade measures. The administration imposed 50% tariffs on approximately $20 billion in Canadian goods last month. Ottawa responded by announcing dollar-for-dollar retaliatory tariffs set to take effect September 8.

Prime Minister Mark Carney framed the countermeasures as necessary defense. "Canada will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses," he said.

The friction extends beyond tariffs. An executive order this week renamed Lake Ontario to "Lake America" on federal maps and documents — a symbolic gesture that applies only to U.S. government usage but has inflamed sentiment on both sides of the border. New York Governor Kathy Hochul rejected the rebranding bluntly, underscoring that states are not bound by the federal designation.

Antitrust cooperation between the two countries has historically been routine. The agencies regularly coordinate on cross-border mergers, cartel investigations, and competition policy. A sustained pause would mark a significant departure from that practice, potentially complicating enforcement actions that touch both economies.

Neither the Justice Department nor Canadian competition authorities have commented on whether specific investigations are currently affected.