DOJ Denies WSJ Report of Halt in Antitrust Cooperation With Canada Amid Trade Tensions

The U.S. Department of Justice has denied a report that its antitrust division was instructed to halt all cooperation with the Canadian government, a claim that surfaced amid ongoing trade friction between Washington and Ottawa.

The Allegation

The Wall Street Journal reported on Friday, citing internal emails, that officials in the DOJ's antitrust division were ordered to stop all work with Canadian authorities. The report specified that Lynda Marshall, chief of the division’s international section, sent an email on Wednesday directing staff to cease cooperation on cases and policy matters without providing a reason.

A subsequent email on Friday reportedly asked section chiefs to compile lists detailing all areas of cooperation with Canada, according to the Journal's report. The alleged directive comes as the two countries navigate a trade spat that has resulted in tariffs on tens of billions of dollars in cross-border commerce.

Justice Department Issues Denial

The Justice Department called the report "false" in an emailed statement to Reuters. A spokesperson clarified that the "alleged direction was never given to anyone." Instead, the department stated that the division was only asked to "temporarily hold off on a scheduled meeting on a specific investigation until the DOJ’s antitrust team had more time to prepare."

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The White House deferred requests for comment to the DOJ, and the Canadian government had not issued an immediate response, according to Reuters.

Market Implications

This incident highlights the potential for geopolitical tensions to spill over into regulatory and enforcement matters. For investors and corporations, any disruption in cross-border antitrust cooperation could create significant uncertainty, particularly for mergers and acquisitions that require review in both jurisdictions.

A breakdown in such long-standing collaboration could complicate deal timelines, increase regulatory risk, and signal a further deterioration in the U.S.-Canada trade relationship, which is critical for numerous sectors including automotive, energy, and agriculture.