The U.S. Justice Department's antitrust division has reportedly been ordered to freeze all work with the Canadian government as trade disputes between the two countries intensify. The directive, issued earlier this week, instructs officials to halt cooperation on cases and policy issues with Canadian authorities, according to The Wall Street Journal, which obtained emails detailing the order.

Lynda Marshall, chief of the antitrust division's international section, sent the directive on Wednesday. On Friday, section chiefs were also instructed to provide lists of areas of cooperation with Canada by the end of the day. The emails did not specify a reason for the halt in cooperation.

However, the Justice Department disputed the report, stating that the "alleged direction was never given to anyone." The department clarified that 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."

This reported freeze in antitrust cooperation comes amid ongoing trade disputes between the U.S. and Canada, long-standing allies. Tensions have been exacerbated by President Donald Trump's trade policies targeting Canada. Most recently, Trump issued an executive order to rename Lake Ontario to "Lake America," an order that applies to the U.S. federal government but not to Canada or other international bodies.

The trade war has led to tariffs on billions of dollars in cross-border commerce. Canada has announced retaliatory tariffs, set to begin Sept. 8, in response to the U.S. administration's new 50% tariffs on approximately $20 billion worth of Canadian goods, which took effect last month. Canadian Prime Minister Mark Carney stated that Canada "will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses."