The U.S. Justice Department’s antitrust division was reportedly instructed this week to halt all collaboration with the Canadian government amid escalating trade tensions between the two countries.
Lynda Marshall, who heads the international section of the antitrust division, ordered officials to stop cooperating on cases and discussing policy matters with Canadian authorities on Wednesday. Emails reviewed by The Wall Street Journal indicate that no explanation was provided for this sudden directive.
Additionally, section chiefs were told in a follow-up email on Friday to compile lists detailing their areas of cooperation with Canada, to be submitted by the end of the day.
Interestingly, the DOJ denied the report, asserting that no such direction had been issued. They clarified that the division was merely asked to “temporarily hold off” on a planned meeting regarding a specific investigation to allow the antitrust team more preparation time.
This development arrives amidst ongoing disputes between the U.S. and Canada, longstanding allies, particularly since the Biden administration’s trade conflicts with Canada and the recent controversial executive order to rename Lake Ontario as “Lake America.”
Although the renaming is limited to the U.S. federal government, leaving other international bodies and U.S. states unaffected by this change, it adds fuel to the rising tensions stemming from Trump’s return to the presidency in January 2025.
The trade war has led to significant tariffs on billions of dollars worth of bilateral trade.
In a related move, the Canadian government announced plans to introduce retaliatory tariffs against the U.S., set to begin on September 8, in response to new 50% tariffs imposed by the Trump administration on roughly $20 billion in Canadian goods.
Prime Minister Mark Carney stated that Canada would respond by matching the U.S. tariffs dollar for dollar to safeguard Canadian workers and businesses.
