DOJ Creates Trade Fraud Task Force to Focus on Enforcing US Trade Tariffs and Customs Laws

Sep 9, 2025

Client Alert: DOJ Creates Trade Fraud Task Force to Focus on Enforcing US Trade Tariffs and Customs Laws

KEY TAKEAWAYS

The Department of Justice (DOJ) and the Department of Homeland Security (DHS) recently created a Trade Fraud Task Force to aggressively pursue enforcement actions against importers seeking to evade US trade tariffs and customs duties.
This initiative reflects the Trump administration’s focus on enforcing international trade laws to promote domestic production and manufacturing.
Acting Assistant Attorney General Mathew R. Galeotti warned that the DOJ’s Criminal Division will use “every available tool to hold bad actors accountable.”
The Trade Fraud Task Force specifically invited corporate whistleblowers to refer cases to DOJ’s Criminal Division and “encourage[d] all importers and their agents to conduct thorough audits of their importing practices and voluntarily self-disclose and remediate unlawful behavior.”

BACKGROUND

Immediately upon taking office, President Trump issued the America First Trade Policy, which highlighted his administration’s interest in boosting domestic manufacturing and production. The administration has imposed significant trade tariffs on imports from numerous countries over the last eight months, and it has made clear that steep tariffs will remain a key component of US trade policy.

The administration has also pinpointed the smuggling of illegal goods into the US as another trade related issue it will address.

This new task force builds on other recent DOJ initiatives, including DOJ Criminal Division’s May 12, 2025 white-collar enforcement plan (discussed in a prior Client Update) which listed the investigation and prosecution of trade fraud as one of the Division’s highest priorities.

THE TRADE FRAUD TASK FORCE

The Trade Fraud Task Force will strengthen coordination between the Civil and Criminal Divisions of DOJ and DHS as they investigate international trade law violations, including trade tariff evasion and the smuggling of contraband into the US.

The Trade Fraud Task Force will work closely with US Customs and Border Protection and Homeland Security Investigations to identify and combat trade fraud. The administration stated that it will utilize the Tariff Act of 1930, the False Claims Act, and various federal fraud and conspiracy statutes in order to curb illegal importations.

From Civil Enforcement to Criminal Prosecutions: Cracking Down on Violations of US Trade Laws

Over the last several months, DOJ’s Civil Division has reached settlements with importers alleged to have evaded customs duties across a wide range of industries. The creation of the Trade Fraud Task Force, however, signals the administration’s interest in pursuing criminal actions against those who evade trade tariffs.

Companies that work with foreign importers should be on heightened guard, as the administration has raised the stakes for those who violate US trade laws. In a statement, Acting Assistant Attorney General Galeotti warned that in addition to “nefarious importers” who “brazenly commit[] trade fraud,” their co-conspirators will be prosecuted as well. This indicates that companies who deal with importers, even indirectly, may be scrutinized more heavily than in the past.

Galeotti stressed that “[t]rade fraud is not victimless crime, and it won’t be tolerated.”

Self-Reporting and Referrals to the Authorities

In its announcement, the Office of Public Affairs at DOJ emphasized that “the Task Force welcomes referrals and cooperation from the domestic industries that are most harmed by unfair trade practices and trade fraud.” The announcement further encouraged participation in DOJ Criminal Division’s Corporate Whistleblower Program and use of the False Claims Act’s qui tam provisions.

The announcement concluded with a warning: “Finally, the Task Force encourages all importers and their agents to conduct thorough audits of their importing practices and voluntarily self-disclose and remediate unlawful behavior consistent with the Justice Manual §§ 4-4.112 and 9-74.120.” (emphases added).

Conclusion

The creation of the Trade Fraud Task Force is consistent with this administration’s interest in encouraging domestic production and manufacturing. Companies that deal with imports, and especially with imports from countries that have been the subject of recent tariffs, should take steps to ensure that they comply with current trade laws.

In addition, companies should consider proactive reporting to law enforcement if they learn of trade violations, even when they are not aware of any open investigation by law enforcement. Furthermore, if law enforcement uncovers trade violations, companies should take immediate steps to come into compliance. Both will minimize exposure to civil and criminal liabilities.

Sher Tremonte LLP will continue to monitor developments related to the DOJ Criminal and Civil Division’s policies. If you have any questions about these policies or your obligations, please contact us. Written by Brian Kidd, Alison Moe, and Raphael Friedman.