The Department of Justice has launched a cross-agency Trade Fraud Task Force to pursue importers and other parties who defraud the United States through tariff evasion and smuggling.
The task force brings together the DOJ’s Civil and Criminal Divisions with the Department of Homeland Security to protect American manufacturers and workers from unfair trade practices that cost jobs and government revenue.
The initiative supports President Trump’s “America First Trade Policy” issued on Inauguration Day, which aims to benefit American workers and businesses. The task force will use civil penalties, criminal prosecutions, and asset seizures to enforce customs laws.
“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.”
Trade fraud deprives the government of revenue while posing a threat to domestic industries and national security. Fraudsters import goods at below-market prices without paying lawful duties or smuggle prohibited items that violate intellectual property rights.
“For years, nefarious importers and their co-conspirators have put law-abiding businesses in the United States at a competitive disadvantage — and cheated the American public of funds — by brazenly committing trade fraud,” said Acting Assistant Attorney General Matthew R. Galeotti of the Criminal Division. “Trade fraud is not a victimless crime, and it won’t be tolerated.”
Since March, the DOJ’s Commercial Litigation Branch has reached settlements involving improperly evaded customs duties on products including wood flooring, plastic resin, aluminum products, and quartz surfaces. Deputy Assistant Attorney General Brenna Jenny emphasized the importance of whistleblowers in identifying fraud schemes.
The task force will collaborate with U.S. Customs and Border Protection and Homeland Security Investigations (HSI) under Executive Order 14243. This partnership aims to detect fraud more efficiently while strengthening enforcement.
“Enforcing U.S. international trade laws is one of our agency’s top priorities, and this revitalized and expanded Trade Fraud Task Force is a significant step in the right direction,” said Assistant Director for Global Trade Ivan Arvelo of HSI.
The task force encourages referrals from domestic industries, which are often best positioned to identify fraud threatening American markets. Whistleblowers can submit information through the Criminal Division’s Corporate Whistleblower Program or use False Claims Act provisions.
Importers are encouraged to review their practices and voluntarily disclose any unlawful activities. The administration positions the enforcement effort as protecting honest American competitors from those backed by foreign adversaries seeking to destabilize U.S. markets.