Did Trump Freeze DOJ Antitrust Cooperation With Canada? Justice Department Denies Report

The United States Justice Department’s antitrust division was instructed earlier this week to suspend all its cooperation with Canadian authorities, as revealed in internal emails reported by the Wall Street Journal on Sept. 4. The Department of Justice denied the claim on the same day, stating that it was false.

Lynda Marshall, who is the head of the international section of the antitrust division, directed officials via email on Wednesday to stop working together on cases and taking part in discussions on policy matters with Canadian authorities. The report also stated that the section chiefs were told on Friday to furnish lists detailing the areas in which they cooperate with Canada.

The Justice Department called the report false in an emailed statement to Reuters, saying the “alleged direction was never given to anyone.” 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,” the department said.

DOJ Says Cooperation Was Not Frozen

The email directing staff to pause cooperation resulted from a misunderstanding of the underlying instruction. DOJ spokeswoman Emily Covington said the directive concerned rescheduling a meeting rather than suspending cooperation with Canada, according to the Journal. Marshall later acknowledged the error, and coordination with Canadian counterparts could continue.

The clarification changes the significance of the original report. While an internal email did instruct officials to pause cooperation, the Justice Department says there was no department-wide decision to freeze antitrust work with Canada.

It illustrates the difference between an internal operational instruction and a formal policy decision by the department. Based on the available reporting, there is no verified evidence that the DOJ adopted a broader policy of suspending antitrust cooperation with Canada.

Trade Tensions Raise Stakes

The disagreement arose because trade relations between the U.S. and Canada are still strained. On Aug. 22, the United States introduced a 50 per cent tariff on $27.6 billion worth of Canadian goods, as stated by Canada’s Department of Finance.

Canada plans to introduce retaliatory tariffs of 15%, 25% and 50% on $27.6 billion worth of imports from the United States, with the tariffs coming into effect at 12:01 a.m. on September 8. These tariffs will apply to a range of products such as steel, dairy products, appliances, agricultural equipment, pulp and paper, and electronics.

The Canadian government stated that the new tariffs will be the same as the respective U.S. tariff rates for the products in question, and the existing Canadian counter-tariffs, such as those applied to U.S. automobiles, will also stay in place.

What Antitrust Cooperation Involves

The United States and Canada have coordinated their actions concerning companies and markets that operate in both countries, and this cooperation has involved sharing information, conducting investigations into cross-border activities, and coordinating on merger reviews.

The antitrust authorities of the United States and Canada have collaborated with each other on investigations into price-fixing and cross-border mergers.

A suspension of that cooperation in a formal sense would therefore have consequences that go beyond just one meeting. Nevertheless, the clarification from the DOJ shows that a more general suspension had not been ordered.

The immediate issue is whether the mistaken internal instruction caused any disruption to specific investigations or meetings involving Canadian authorities. The DOJ has said cooperation continues, while the Wall Street Journal’s later account indicates the original email reflected a misunderstanding rather than a broader policy decision.

The development comes days before Canada’s new counter-tariffs are scheduled to take effect Sept. 8, adding another point of scrutiny to U.S.-Canada relations as both governments continue to negotiate amid the wider trade dispute.