A number of recent actions indicate that the Trump administration is making good on its pledge to be more aggressive in pursuing trade enforcement. Importers are thus well-advised to ensure they have strong compliance measures in place so as to withstand federal scrutiny expected to further increase in 2026 and avoid the financial and reputational costs that violations and resulting penalties could incur.
In early 2025 the Department of Justice announced that its Criminal Division’s enforcement priorities for prosecuting corporate and white-collar crimes would include “trade and customs fraudsters, including those who commit tariff evasion.” To reflect that effort the division expanded its corporate whistleblower awards pilot program to add “trade, tariff, and customs fraud by corporations” as a priority area.
The DOJ subsequently put teeth into that effort by launching a “revitalized” Trade Fraud Task Force to pursue those who seek to evade tariffs and other duties as well as smugglers attempting to import prohibited goods. Officials said enforcement efforts would include duty and penalty collection actions under the Tariff Act of 1930, actions under the False Claims Act, and, wherever appropriate, parallel criminal prosecutions, penalties, and seizures under Title 18’s trade fraud and conspiracy provisions. The task force is leveraging expertise from both the Civil and Criminal divisions of the DOJ, collaborating with U.S. Customs and Border Protection and Homeland Security Investigations, and encouraging referrals and cooperation from domestic industries most harmed by unfair trade practices and trade fraud.
The DOJ announced in December 2025 the following actions illustrating that these efforts are beginning to yield results.
- A U.S. company agreed to pay $54.4 million to resolve allegations that it violated the FCA by knowingly (1) misrepresenting that imported goods originated in Taiwan to avoid paying Section 301 tariffs on China, (b) misclassifying these goods to further reduce duties owed, and (c) failing to mark the goods with the country of origin and pay applicable marking duties.
- A customs broker was sentenced to 51 months in federal prison and ordered to pay $7.6 million in restitution for providing a client with false customs duty forms and invoices in support of fraudulent requests for reimbursement for duty fees. After being indicted for these violations the broker defrauded other clients by keeping they money they gave him instead of using it to pay customs duties they owed.
- A domestic importer for a multinational conglomerate in China agreed to pay more than $53 million, including $30+ million in civil penalties, to settle a lawsuit alleging that for five years it avoided significant antidumping duties applicable to its imported goods by falsely classifying them and failing to disclose that they were covered by the order.
- A global company under criminal investigation for falsifying country of origin declarations to avoid Section 301 tariffs on China avoided prosecution due to factors such as its timely and voluntary self-disclosure of the misconduct, remedial efforts such as an internal compliance review and enhancements to the company’s compliance program, and repayment of the evaded tariffs. However, the company’s former chief operating officer pleaded guilty to conspiracy to smuggle goods and faces up to five years in prison.
While many observers expect to see an increase in similar measures in 2026, there are steps companies can take to mitigate potential problems. “With more and more companies getting swept up in CBP’s enforcement net, it’s more important than ever to have and stick to a plan that not only avoids further problems but can also improve prospects for a favorable resolution,” said Jason Kenner, a former Department of Justice attorney who heads ST&R’s litigation practice. “Conducting internal risk assessments and/or compliance reviews can help identify possible vulnerabilities and prompt improved processes and procedures. ST&R’s experienced trade attorneys, former CBP auditors and senior audit managers, and others on staff are among the best in the business at steering companies successfully through these processes.”
For more information on how ST&R can assist your company with its compliance efforts, please contact messages@strtrade.com or your ST&R professional.
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