In August 2025, the Department of Justice (DOJ) launched a cross-agency Trade Fraud Task Force to facilitate implementation of the White House's proposed changes in its January 2025 "America First Trade Policy." The trade policy directs several departments of the government to consider ways to combat tariff inequality and reduce imports in favor of domestic products. The Treasury Department, Commerce Department, and Homeland Security, among others, are tasked with analyzing the efficacy of various trade fraud preventative measures.

The DOJ’s formation of the Trade Fraud Task Force marks a new era for cross-agency efforts to enforce trade laws. It is comprised of members of the Civil and Criminal Divisions of the DOJ, the Department of Homeland Security’s U.S. Customs and Border Protection (CBP), and CBP’s investigative arm, Homeland Security Investigations (HSI). These agencies have a long history of cooperation under the International Emergency Economic Powers Act to restrict international transactions and impose sanctions as authorized by the president. However, prior to President Donald Trump, presidents’ use of that law had centered on safeguarding national security and countering terrorism through export controls. 

The Trade Fraud Task Force formalizes the collaboration between DOJ, CBP, and HSI for the purpose of enforcing import-related controls and is intended to “bring robust enforcement against importers and other parties who seek to defraud the U.S.” The task force will implement the measures developed under the trade policy directives to uncover unfair or illegal trade practices utilized by importers. 

The Task Force Expands the DOJ’s Prior Efforts to Eradicate Trade Fraud

The Trade Fraud Task Force is a significant shift in how the DOJ leverages both criminal and civil resources across government agencies. In the past, task forces were largely focused on fraud in specific legal or regulatory violations. These include task forces regarding corporate fraud such as falsifying corporate financials and misrepresenting severity of business risks, health care fraud through Medicaid and Medicare, and varying types of financial fraud that include Ponzi schemes and money laundering. 

The Trade Fraud Task Force is distinguished by the broad scope of its mandate, which has repercussions across all industries involved in international trade and domestic imports. The expanded task force structure could increase information sharing and coordination between CBP, HSI, and DOJ, improving efficiency and advancing the speed and accuracy of trade fraud investigations and enforcement. Others worry, however, that it could cause a chilling effect on companies that rely on U.S. markets due to fear of investigations. 

Risks Importers Face from the Task Force 

The America First Trade Policy identifies current trade practices perceived by the Trump administration as most susceptible to fraud, suggesting key import laws and restrictions that will be investigated by the task force. For example: 

• The trade policy scrutinizes the use of the $800 or less, duty-free de minimis exemption under 19 U.S.C. § 1321, as well as how it is being leveraged to import counterfeit products and contraband drugs into the U.S. 
   
• The trade policy calls for an assessment of U.S. industrial and manufacturing capabilities to adjust imports suspected of threatening national security under 19 U.S.C. § 1862, including reliance on imports of steel and aluminum. 
   
• The trade policy requires investigations into the efficacy of antidumping duties (i.e., import duties intended to prevent sales of foreign products in the U.S. at prices lower than the product’s price in another country). Similarly, the trade policy directs investigations of countervailing duties (i.e., import duties intended to overcome the imbalance caused by what the trade policy considers to be unfair government subsidies by foreign companies). These investigations are intended to determine whether antidumping and countervailing duties induce compliance with laws and regulations applicable to importers in the course of their business. 
   
• The trade policy highlights the need for additional tariffs and the review of current tariff policy to address potential loss of tariff revenue. This suggests the task force will vigorously pursue tariff fraud committed through the false classification of goods, the undervaluation of goods, or the misrepresentation of the country of origin of goods. 

In light of the trade policy, importers need to closely consider the restrictions and requirements applicable to the goods they are importing into the U.S. A robust internal control policy can ensure compliance with the laws applicable to their business.
Because the trade policy explicitly enumerates these issues, importers should take care to:

• Review their use of the de minimis exemption, analyze whether their imports may be considered central to national security and subject to potential investigation under 19 U.S.C. § 1862.
   
• Properly assess antidumping and countervailing duties.
   
• Examine if their import documentation properly reflects the classification, value, and country of origin. 

The task force could result in increased investigations to identify potential regulatory violations that could lead to significant civil liability, including financial penalties and the imposition of regulatory undertakings to remediate past actions. Criminal charges arising from the same investigations may jeopardize or prohibit future imports into the U.S. 

The task force is employing additional legal theories to address trade fraud. Recent enforcement actions resolving allegations of customs duties evasion for products such as wood flooring, plastic resin, extruded aluminum products, and quartz were based on violations of the False Claims Act (FCA) in suits originating from reports made through the Criminal Division’s Corporate Whistleblower Program and prosecuted by the federal government. This use of new tactics, including the use of FCA actions to prosecute import violations and the exclusion of mitigating factors that were considered in trade enforcement matters formerly prosecuted by CBP, has raised concerns that the task force may result in overly aggressive civil penalties, criminal convictions, or harsh settlements.

Key Methods of Mitigating the Risk of Trade Fraud 

Some key recommendations for importers and for companies that rely on imports from foreign countries include:

• Conducting thorough internal audits of importing practices. This includes an investigation of import classifications such as representation of goods, valuation of goods, and country of origin.
   
• Ensuring imports are properly classified under the U.S. Harmonized Tariff Schedule and any applicable duty obligations are satisfied. Misrepresentation of imports coming from what are seen as high-risk countries, such as China, Russia, Iran, and others, may be subject to greater scrutiny. 
   
• Validating the application of antidumping and countervailing duties. Compliance policies that examine both importers and their supply chain partners will mitigate the risk of underpayment and exposure to task force actions under Section 301 investigations.
   
• Developing compliance methods to stay informed of relevant and evolving regulations, including the imposition of new or increased tariff and trade duties, and making proper disclosures to CBP when importing goods. 
   
• Considering voluntary self-disclosure for any trade law violations. Recent trade fraud enforcement actions have shown that assisting the U.S. Government by disclosing fraudulent practices may allow for credit under DOJ guidelines. Moreover, companies could maintain an anonymous whistleblower program that permits confidential submissions to identify and investigate actions that may require self-reporting to the DOJ or other agencies.
   
• Remediating past violations or gaps in internal controls to avoid future errors. Consistent with self-reporting, the DOJ may afford credit for companies that proactively remediate behavior inconsistent with trade law. 

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