DOJ and Homeland Security Launch Cross-Agency Trade Fraud Task Force

Trade Update • Sept.30, 2025

Key Points

• The Task Force enforces tariffs, antidumping, countervailing, and Section 301 duties under President Trump’s America First Trade Policy.
• It involves DOJ’s Civil and Criminal Divisions, U.S. Customs and Border Protection (CBP), and Homeland Security Investigations (HSI).
• Enforcement actions include civil penalties, criminal prosecutions, and duty recoveries through False Claims Act and Tariff Act tools.
• Recent trade enforcement cases include settlements for duty evasion, false origin declarations, misclassification, undervaluation, and voluntary disclosures involving wood flooring, plastic resin, aluminum products, and quartz countertop materials.
• Whistleblowers and importers are urged to report suspected trade fraud to protect American industries and workers.

The U.S. Departments of Justice (DOJ) and Homeland Security launched a Trade Fraud Task Force on August 29, 2025, to stop tariff evasion, customs fraud, and smuggling. It aims to ensure that all importers, including many Canadian exporters shipping to the U.S., follow trade laws and pay all required duties.

The Task Force combines resources from DOJ’s Civil and Criminal Divisions, U.S. Customs and Border Protection, and Homeland Security Investigations to ensure importers comply with trade laws and pay all required duties. It supports President Trump’s America First Trade Policy to ensure a level playing field for American manufacturers and workers by enforcing compliance with trade laws and reducing unfair competition.

Strengthening Enforcement Against Trade Fraud

Enforcement tools include duty and penalty collection under the Tariff Act of 1930, False Claims Act lawsuits, and criminal prosecutions under trade fraud statutes.

“The President’s America First Trade Policy supports American manufacturing by ending unfair trade practices,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Civil Division will coordinate with law enforcement partners to bring to justice any parties attempting to harm American workers through evasion of tariffs and other duties.”

Acting Assistant Attorney General Matthew R. Galeotti added, “Trade fraud is not a victimless crime, and it won’t be tolerated. 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.”

Canadian exporters and U.S. importers are facing challenges proving compliance with the United States-Mexico-Canada Agreement (USMCA) to qualify for exemptions from President Trump’s 35% tariffs related to fentanyl concerns. The compliance process, especially for manufactured goods with parts sourced abroad, can be complex and error-prone, increasing risks of trade violations. This highlights the importance of the Task Force’s coordinated enforcement.

Interagency Collaboration

The Task Force brings together:

• DOJ Civil Division: leads civil enforcement, False Claims Act cases.
• DOJ Criminal Division: pursues criminal prosecutions of trade fraud.
• U.S. Customs and Border Protection (CBP): provides customs expertise and audits.
• Homeland Security Investigations (HSI): investigates trade crimes and enforces customs laws.

Example Enforcement Cases

The following sample cases underline the serious consequences of customs fraud and tariff evasion across different sectors.

• Evolutions Flooring and its owners settled for $8.1 million for evading duties on multilayered wood flooring from China by submitting false origin information.
• Plastic resin importers paid $6.8 million to resolve False Claims Act claims relating to voluntary self-disclosure.
• Grosfillex Inc., a patio furniture maker, paid $4.9 million for evading duties on extruded aluminum products.
• Allied Stone Inc. and a company official settled for $12.4 million over false claims involving quartz countertop materials.

DOJ White-Collar Enforcement Priorities

DOJ prioritizes fighting trade and customs fraud, health care fraud, money laundering, and other high-impact white-collar crimes. Corporate enforcement encourages voluntary self-disclosure and cooperation to reduce penalties. Investigations will be efficient, targeting serious misconduct while minimizing burdens on compliant businesses.

Market, Government, and Consumer Fraud (MGC) Unit

• The MGC Unit prosecutes fraud harming U.S. markets, government programs, and consumers.
• It focuses on trade fraud, securities fraud, procurement fraud, and complex consumer scams.
• Works closely with regulatory partners like the SEC and CFTC.
• Plays a key role in the Trade Fraud Task Force.

Reporting and Compliance

The Task Force invites companies, whistleblowers, and the public to report suspicious trade fraud. Reports can be submitted through the DOJ Corporate Whistleblower Program via CorporateWhistleblower@usdoj.gov. Importers are also encouraged to audit their practices and self-report violations to reduce penalties.

The Department of Justice specifically encourages businesses most harmed by tariff evasion to come forward and report allegations using whistleblower provisions that sometimes include financial rewards. These provisions allow individuals to file lawsuits on behalf of the federal government and share in any recovered funds.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.