On August 29, 2025, the Department of Justice (DOJ) announced the launch of a new cross-agency Trade Fraud Task Force. The move was billed by the DOJ as intended “to aggressively pursue enforcement actions against any parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy.”
The task force will bring together various components from both the DOJ and the Department of Homeland Security, including the DOJ’s Criminal and Civil Fraud Sections, U.S. Customs and Border Protection, and Homeland Security Investigations. It will pursue violations of the Tariff Act of 1930, the False Claims Act (FCA), and criminal fraud and conspiracy provisions under Title 18 of the U.S. Code.
This announcement is only the latest evidence of the DOJ’s increased focus on trade-related issues. It follows a May 12, 2025 memo from Acting Assistant Attorney General Matthew Galeotti that identified “trade and customs fraud, including tariff evasion,” as a top priority for the DOJ’s Criminal Division and, earlier this month, the repositioning of the Criminal Fraud Section’s Market Integrity and Major Frauds Unit into a new Market, Government, and Consumer Fraud Unit tasked with investigating and prosecuting “cases that involve large-scale trade and customs fraud, including individuals and companies who orchestrate criminal schemes to circumvent tariff and trade rules and regulations.”
The DOJ concluded its announcement of the new task force with a direct appeal for “referrals and cooperation” from domestic industries and whistleblowers. The task force specifically encouraged whistleblowers to use the FCA’s qui tam provisions, which allow private citizens to file lawsuits on behalf of the government and share in any recovery, but as we have noted in previous advisories on the DOJ’s whistleblower pilot programs, incentives, and eligibility, federal criminal authorities have significantly increased their interest in and solicitation of whistleblowers, and in Galeotti’s memo, he expanded the Criminal Division’s Corporate Whistleblower Awards Pilot Program to include information related to “trade, tariff, and customs fraud by corporations.”
Key Takeaways
Significantly increased trade-related enforcement risk
While the risk of trade-related civil and criminal enforcement is not new, the degree of that risk is higher than ever, with the DOJ and multiple other federal agencies expressly identifying trade fraud as a priority and no doubt wanting to deliver enforcement results. The prominent role of the DOJ’s Criminal Division in trade-related investigations and enforcement suggests that such results also may be more severe than in the past, and the DOJ’s highlighting of qui tam and whistleblower programs and incentives further raises the risk that companies will find themselves subject to enforcement agency scrutiny.
Added complexity in investigations
With so many agencies now training their focus on trade-related matters, companies are likely to face more demands on a more accelerated timetable from more sources. Effective engagement with and deconfliction of demands from multiple agencies will be imperative and will require the anticipation of and preparation for familiar corporate criminal investigation approaches as well as trade-specific nuances.
Effective audit and compliance essential
Robust and effective trade compliance and controls—the development and implementation of which can be especially challenging amid what is a very dynamic time in trade policy and regulation—remain the best key to avoiding enforcement scrutiny. Companies must ensure that all declarations, classifications, and valuations are accurate and otherwise compliant, especially when it comes to country-of-origin determinations, since vigilance against supplier circumvention of higher tariffs and duties by misdeclaring origin can expose companies to substantial risk. Regular risk assessments also remain a critical tool, along with familiar compliance essentials such as training and effective internal reporting channels.
If you have any questions, or would like additional information, please contact one of the attorneys on our International Trade & Regulatory team or one of the attorneys on our White Collar, Government & Internal Investigations team.
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