On August 29, 2025, the U.S. Department of Justice (DOJ) announced the creation of a new Trade Fraud Task Force (“Task Force”).
DOJ touts this cross-agency initiative as being designed “to aggressively pursue enforcement actions against any parties who seek to evade tariffs and other duties”—promising “robust enforcement against importers and other parties who seek to defraud the United States.”
Created to further the administration’s “America First Trade Policy” announced on January 20, 2025, the Task Force will consist of civil and criminal components of the DOJ along with U.S. Customs and Border Protection and Homeland Security Investigations. It will focus on ensuring compliance with trade laws, including payment of all tariffs and duties (e.g., antidumping and countervailing duties, Section 301 tariffs, and other customs obligations). DOJ promises increased parallel civil and criminal actions under the False Claims Act (FCA), Tariff Act, and federal criminal statutes related to trade fraud and conspiracy.
Acting Assistant Attorney General Matthew R. Galeotti said in the DOJ press release, “The Criminal Division, led by the Fraud Section, is committed to using every available tool to hold bad actors accountable and prevent the theft of money intended to reduce the deficit and fund government programs.”
Assistant Attorney General Brett A. Shumate said: “The Civil Division will coordinate with law enforcement partners to bring to justice any parties attempting to harm American workers through the evasion of tariffs and other duties.”
Fraud, Waste, and Abuse
The second Trump administration continues to make clear that the civil FCA will remain one key tool in government efforts to combat fraud, waste, and abuse in a number of arenas. A relaunch of an FCA working group to combat health care fraud and abuse was announced in early July.
The DOJ has already indicated robust use of the FCA in the trade space, particularly with respect to items imported from China. The agency announced an August 19 settlement for $12.4 million with a company alleged to have evaded antidumping and countervailing duties owed to the United States from quartz countertops and a July 24 settlement for $4.9 million regarding items made from extruded aluminum. Importers of plastic resin agreed in a July 23 settlement to pay $6.8 million for knowingly failing to pay customs duties but took steps to cooperate with the U.S. government investigation.
And while some judges and litigants have been casting doubt on the constitutionality of the FCA whistleblower provisions—see a related Epstein Becker Green blog post—the DOJ, in the announcement of the Task Force, specifically “encourages whistleblowers to use the qui tam provisions of the [FCA] to alert the government to credible allegations of fraud.”
“[W]e welcome the vital contributions of whistleblowers who can help identify fraud schemes involving an array of imported products,” Deputy Assistant Attorney General Brenna Jenny of the Civil Division said in the press release.
Why This Matters for Businesses
The formation of this Task Force underscores the Trump administration’s focus on customs compliance and trade enforcement. Businesses engaged in importing, distributing or using products manufactured outside the country should evaluate their own policies and practices to ensure their compliance programs are equipped to handle increased scrutiny. Importers, distributors, and related entities should anticipate:
- increased scrutiny of importing practices and customs declarations;
- a substantial rise in internal whistleblower activity leading to False Claims Act investigations and litigation;
- more civil enforcement actions seeking recovery of unpaid duties and penalties; and
- threats of potential criminal exposure for companies and individuals accused of violations.
Key Takeaway and Action Items
The DOJ has made clear that it will use “every available tool” to pursue both companies and individuals in connection with potential trade violations, meaning effective compliance programs and self-disclosure mechanisms will play a critical role in mitigating risk. Those potentially impacted should consider:
- implementing and enhancing compliance programs tailored to industry-specific risks;
- conducting confidential, privileged internal audits and investigations to identify and remediate potential violations before they become government enforcement matters;
- evaluating voluntary self-disclosure options to enhance credibility and mitigate risk;
- establishing protocols for handling interactions with potential whistleblowers; and
- creating or updating internal policies to ensure prompt, effective responses to government inquiries.
Epstein Becker Green Staff Attorney Ann W. Parks contributed to the preparation of this post.
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