US Justice Department Reportedly Pauses Antitrust Work with Canada Amid Worsening Trade Feud

Allegations of Halting Cooperation

Reports indicate that the U.S. Justice Department's antitrust division received instructions earlier this week to suspend all collaborative efforts with the Canadian government. This alleged directive comes as economic disputes between the two neighboring nations intensify.

According to emails obtained by a major financial publication, Lynda Marshall, who leads the antitrust division's international section, issued an order on Wednesday. This order instructed officials to cease all cooperation on ongoing cases and engagement regarding policy matters with Canadian authorities. The communication reportedly did not specify a reason for the new directive.

Further communications, also cited by the newspaper, indicated that section chiefs within the antitrust division were instructed on Friday to submit comprehensive lists detailing areas of existing cooperation with Canada by the end of that day.

Justice Department's Rebuttal

However, the U.S. Justice Department has contested the accuracy of this report. In an official statement, the department asserted that the "alleged direction was never given to anyone."

The department clarified that the division had only 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."

Escalating Trade Tensions and Retaliation

These developments unfold amidst ongoing disagreements between the United States and Canada, countries that have maintained a close alliance for many decades. The current friction stems from President Donald Trump's trade policies directed at Ottawa, which have increasingly targeted the northern neighbor. A recent example of these tensions was the president's executive order to rename Lake Ontario to "Lake America."

While this renaming initiative applies solely to the U.S. federal government and does not compel Canada, other international bodies, or U.S. states to adopt the new designation, the order has contributed to the heightened strain in bilateral relations, which intensified following President Trump's return to the White House in January 2025.

The trade dispute has already resulted in the imposition of tariffs affecting cross-border trade valued in the tens of billions of dollars.

In response to new 50% tariffs imposed by the Trump administration on approximately $20 billion worth of Canadian goods, which became effective last month, the Canadian government announced its intention to implement retaliatory tariffs against the U.S. starting September 8.

Prime Minister Mark Carney stated that Canada "will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses."