HomeBusinessDOJ Orders Canada Antitrust Work Freeze Amid Escalating Trade Tensions—Uncertain Future Ahead

DOJ Orders Canada Antitrust Work Freeze Amid Escalating Trade Tensions—Uncertain Future Ahead

DOJ Antitrust Division Reportedly Halts Cooperation with Canada as U.S.-Canada Trade War Escalates

The U.S. Justice Department’s antitrust division was directed earlier this week to pause all work with the Canadian government as the trade dispute between the two neighboring nations intensifies, according to a report by The Wall Street Journal.

Antitrust Cooperation Paused Amid Bilateral Tensions

Lynda Marshall, chief of the antitrust division’s international section, ordered officials on Wednesday to halt all cooperation on cases and engagement on policy issues with Canadian authorities, without providing a reason for the directive, according to emails obtained by The Wall Street Journal.

Section chiefs in the antitrust division were also instructed in another email on Friday to provide lists outlining areas of cooperation with Canada by the end of the day, the newspaper reported.

Note: The DOJ disputed the report, stating that the “alleged direction was never given to anyone.” The department said 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.”

Lake Ontario Renamed “Lake America” as Trade Disputes Mount

This comes as the U.S. and Canada, which have been close allies for decades, continue to spar over President Donald Trump’s trade war against Ottawa and subsequent targeting of the U.S.’s northern neighbor. Most recently, the president issued an executive order to rename Lake Ontario to “Lake America.”

Although the renaming applies only to the U.S. federal government — while Canada, other international bodies, and U.S. states are not forced to follow the rebranding — the order adds to the ongoing tensions between the two countries that arose following Trump’s return to the White House in January 2025.

Canada Responds with Retaliatory Tariffs

The trade war has led to tariffs on tens of billions of dollars in cross-border trade. The Canadian government said it would impose retaliatory tariffs on the U.S. beginning Sept. 8 in response to the Trump administration’s new 50% tariffs on about $20 billion worth of Canadian goods, which took effect last month.

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.”

Looking Ahead

The DOJ’s alleged pause in antitrust cooperation with Canada adds a new dimension to an already strained bilateral relationship. While the department has pushed back against the characterization of a full halt, the emails suggest a significant cooling of law enforcement collaboration between the two countries at a time when trade tensions are at their highest in decades.

The Wall Street Journal and Reuters contributed to this report.

News, Government, Business, Finance, Law, US-Canada Relations, Trade War, Antitrust, Tariffs, Lake Ontario Renaming, Executive Orders, Donald Trump, Mark Carney, Lynda Marshall, Department of Justice, Retaliatory Tariffs, International Trade, Cross-Border Economy, Political Tensions, WSJ Report

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