US Department of Justice Establishes Trade Fraud Task Force to Counter Tariff Evasion

In late August 2025, the US Department of Justice announced the formation of a cross-agency Trade Fraud Task Force that will specialize in tariff-related investigations. DOJ positioned the new task force as an extension of the “America First” Trade Policy, which outlines the administration’s strategy for leveraging tariffs to strengthen domestic industries, reduce reliance on foreign manufacturing, and address perceived national security threats.

Over the last few months, government agencies have been increasing their collaboration on trade enforcement, and the announcement represents the US administration’s latest commitment to support the “America First” trade agenda. The task force will “leverage expertise” from members of DOJ’s Civil and Criminal Divisions and the US Department of Homeland Security to pursue enforcement actions against parties seeking to evade tariffs and smugglers seeking to import prohibited goods into the United States.

DOJ commits to “pursuing those who violate customs laws through duty and penalty collection actions under the Tariff Act of 1930, actions under the False Claims Act, and, wherever appropriate, parallel criminal prosecutions, penalties, and seizures under Title 18’s trade fraud and conspiracy provisions.”

We examine the significance of this development in light of DOJ’s recent initiatives to pursue trade-related enforcement actions.[1]

RECENT DEVELOPMENTS IN DOJ ENFORCEMENT EFFORTS

In February, DOJ identified tariff evasion as a “key area” for enforcement and emphasized that the False Claims Act (FCA) would remain key to the government’s efforts to combat fraud and abuse. While the FCA is typically viewed as a statute impacting government contractors and those in the healthcare industry, it has increasingly been used against importers for alleged customs violations, often relating to allegations that they have undervalued, misclassified, or misrepresented the country of origin of the imported product.

The FCA allows so-called “whistleblowers,” known as qui tam relators, to not only file but also litigate alleged FCA violations on behalf of the United States. Historically, whistleblowers have been current and former employees, but relators have started to include competitors, including with respect to customs-based FCA claims. Since March, DOJ’s Civil Division has reached several civil settlements on FCA matters arising from whistleblower complaints and relating to customs evasion.

These settlements are in the millions: in late August, for example, a supplier of countertop and cabinetry products agreed to pay $12.4 million to resolve allegations that it had violated the FCA by, among other things, misrepresenting its products as marble or crystallized glass—merchandise that is subject to lesser duties. Earlier settlements involved payments of $8.1 million and $4.9 million.

Elsewhere, DOJ has indicated support for whistleblowers giving light to trade, tariff, and customs fraud by corporations: in May, the Criminal Division amended its Corporate Whistleblower Awards Pilot Program to reflect the development, and in announcing the task force DOJ encouraged whistleblowers to report fraud through the Criminal Division’s Corporate Whistleblower Program. Following the creation of the task force, we expect to see future collaboration between the Criminal and Civil Divisions on trade-related FCA cases. 

Finally, and most recently, the Criminal Division supplemented its legal bench with resources from DOJ’s Consumer Protection Branch to focus on tariff avoidance and evasion schemes.  Companies and individuals should be aware that more tariff and customs fraud cases are likely on the way, with enforcement in both the criminal civil contexts.

TAKEAWAYS

As the US tariff strategy continues to evolve, we expect to see increased enforcement efforts through cross-agency collaborations. The task force is the clearest signal to date that the US administration is committed to forging new agency relationships to pursue trade enforcement and further the America First trade agenda. Companies would be well advised to conduct a risk assessment to ensure trade law compliance in their supply chains and proper diligence.

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