The Justice Department's antitrust division has reportedly paused cooperation with Canadian authorities as the U.S.-Canada trade dispute escalates, with the department saying no blanket freeze was ordered.
The Justice Department's antitrust division has reportedly paused cooperation with Canadian authorities as the trade dispute between Washington and Ottawa reaches new heights. Internal emails reviewed by the Wall Street Journal show officials were told to halt work on cases and policy engagement with Canada, a striking sign that the standoff now reaches into federal law enforcement machinery.
The department quickly pushed back, insisting no blanket freeze was ever ordered. The mixed signals came on the same day the administration pressed ahead with its tougher posture toward Canada, and as Ottawa prepares its own retaliatory tariffs set to take effect early next week.
For the administration, the episode reflects a simple reality: every arm of the U.S. government is expected to be deliberate about engagement with a trading partner that has repeatedly threatened American industries. Even a temporary, good-faith pause for preparation sends a clear message that Washington's leverage is not reserved for trade talks alone.
Lynda Marshall, the chief of the antitrust division's international section, directed officials on Wednesday to pause all cooperation on cases and engagement on policy issues with Canadian authorities, according to emails obtained by the Wall Street Journal. The directive reportedly came without an explanation.
Section chiefs across the antitrust division were then instructed in a separate email on Friday to provide lists outlining their areas of cooperation with Canada by the end of the day. The requests suggest the pause was meant to give leadership a full picture of just how much day-to-day coordination exists between U.S. and Canadian enforcers, who routinely share information on cross-border merger reviews and anticompetitive conduct.
The Justice Department disputed the report, saying in a statement that the alleged direction was never given to anyone. Instead, the division was asked to temporarily hold off on a scheduled meeting on a specific investigation until the antitrust team had more time to prepare, the department said.
The clarification matters because U.S.-Canada antitrust cooperation has been a quiet pillar of the bilateral relationship for decades. Formal coordination channels and information-sharing agreements have helped both countries police deals and conduct that cross the border, so even a temporary hold signals how thoroughly the broader trade fight has filtered into every corner of government.
The Wall Street Journal first reported the internal directives, citing emails from antitrust division leadership. The reporting itself has become part of the story, with the department offering a pointed denial that contradicts the picture painted by the messages.
The development lands amid a trade war that has already placed tariffs on tens of billions of dollars in cross-border trade. The administration's new 50 percent tariffs on roughly $20 billion worth of Canadian goods took effect last month, and Canada has said it will answer with retaliatory tariffs beginning Sept. 8.
Prime Minister Mark Carney said Canada will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses. The friction has extended well beyond commerce, including the president's executive order renaming Lake Ontario to Lake America, a symbolic move that applies to the U.S. federal government and has further irritated relations between the longtime allies.
For the administration, the harder line is part of a broader effort to press Canada toward a fairer trade arrangement. Officials have argued that Ottawa walked away from a better deal earlier this year, leaving Washington little choice but to respond with leverage of its own.
All eyes now turn to Sept. 8, when Canadian retaliation is scheduled to take effect. If the dispute continues to escalate, antitrust coordination between the two nations could remain in limbo, with consequences for companies on both sides of the border that are navigating merger reviews and joint investigations.
The DOJ says routine cooperation continues and that the only hold was tied to preparation for a single scheduled meeting. Even so, the episode is a reminder that the trade fight is no longer just about goods at the border. It now reaches into enforcement agencies, legal channels, and the everyday business of government between two neighbors who have spent decades working together.
The Justice Department's antitrust division has reportedly paused cooperation with Canadian authorities as the U.S.-Canada trade dispute escalates, with the department saying no blanket freeze was ordered.
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