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 neighboring nations intensifies, according to a report by The Wall Street Journal.
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. Section chiefs were subsequently instructed in another email on Friday to provide lists outlining areas of cooperation with Canada by end of day, according to documents obtained by the newspaper.
The DOJ disputed the report, stating that the "alleged direction was never given to anyone." The department clarified that officials only temporarily held off on a scheduled meeting regarding a specific investigation until the antitrust team had more time to prepare.
This development comes as the United States and Canada, which have been close allies for decades, continue to spar over trade issues following President Donald Trump's return to the White House in January 2025. The administration has imposed tariffs on tens of billions of dollars in cross-border trade, while Canada announced retaliatory measures set to take effect Sept. 8.
What the Right Is Saying
Conservative Republicans have largely supported the Trump administration's aggressive stance on trade with Canada, arguing that previous U.S. trade policies disadvantaged American workers and businesses. They contend that the administration is right to use leverage to address longstanding grievances about Canadian dairy subsidies and other trade barriers.
Senator Josh Hawley, R-Mo., has been a vocal critic of what he describes as unfair trade practices by U.S. trading partners. "The president is finally taking seriously the need to rebalance our trade relationships," Hawley said in a recent floor speech. "For too long, Washington looked the other way while other countries exploited American workers."
Trade policy hawks within the Republican Party have argued that antitrust cooperation with foreign governments should be contingent on reciprocal treatment of American companies. They note that Canadian authorities have not always aligned with U.S. enforcement priorities, and some suggest the pause may prompt Ottawa to address long-standing concerns about market access.
What the Left Is Saying
Progressive Democrats and labor advocates have expressed concern that the breakdown in U.S.-Canada antitrust cooperation could undermine efforts to protect American workers from anticompetitive business practices that cross borders. They note that multinational corporations often structure operations to evade scrutiny by playing jurisdictions against each other.
Senator Elizabeth Warren, D-Mass., has long advocated for stronger enforcement of antitrust laws and international coordination on competition policy. Her office did not immediately respond to a request for comment on the DOJ directive, but allies of the senator have argued that cooperation with allied nations remains essential for effective regulation of large multinational companies.
Consumer advocacy groups aligned with progressive causes warned that pausing information-sharing with Canadian authorities could create gaps in oversight of mergers and corporate conduct affecting both nations' consumers. The Open Markets Institute, a Washington-based think tank critical of big business concentration, has argued that trade disputes should not compromise regulatory cooperation on competition issues.
What the Numbers Show
The trade dispute has resulted in significant tariffs affecting cross-border commerce between the two countries. The Trump administration imposed new 50% tariffs on approximately $20 billion worth of Canadian goods, which took effect last month. Canada announced it would impose retaliatory tariffs on U.S. goods beginning Sept. 8, with Prime Minister Mark Carney stating that Ottawa "will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses."
The United States and Canada conduct approximately $900 billion annually in bilateral trade, making them among the world's largest trading partners. The U.S.-Canada relationship is governed by the United States-Mexico-Canada Agreement, which replaced NAFTA in 2020.
Antitrust cooperation between the two countries has included information-sharing on mergers that could affect both markets, coordination on investigations of companies operating across the border, and joint policy discussions on competition issues in sectors including technology, pharmaceuticals, and telecommunications.
The Bottom Line
The pause in U.S.-Canada antitrust cooperation represents a significant development in the broader deterioration of trade relations between the two countries. While the DOJ disputes the characterization of a comprehensive freeze, the directive to inventory areas of cooperation suggests a substantial reduction in collaborative efforts.
What remains unclear is how long the pause will last and whether it signals a more permanent realignment of U.S. antitrust priorities. The administration has not indicated what conditions would need to be met for cooperation to resume.
Canadian officials have not publicly responded to reports of the DOJ directive, but they are expected to address the matter in upcoming trade negotiations. Business groups on both sides of the border have expressed concern that regulatory divergence could complicate operations for companies with cross-border presence.
The situation will likely be closely watched by international antitrust authorities, who often coordinate enforcement efforts across jurisdictions. A prolonged breakdown in U.S.-Canada cooperation could affect how merger reviews and corporate investigations are conducted for years to come.