US DOJ Expands Criminal Tariff Evasion Enforcement Nationwide

The Trump administration is intensifying enforcement against tariff evasion as part of its broader trade policy, with the Department of Justice (DOJ) prioritizing criminal prosecution of companies and individuals who attempt to evade tariffs. The DOJ has created the Market, Government, and Consumer Fraud Unit to consolidate resources for investigating and prosecuting Customs fraud, signaling a shift from administrative penalties to more aggressive criminal charges. This strategy is exemplified by a recent False Claims Act complaint against Global Office Furniture, accused of defrauding US Customs by underreporting imports to avoid over $2 million in tariffs. The administration’s approach includes encouraging whistleblowers and expanding DOJ personnel dedicated to tackling trade and customs fraud, reflecting concerns that tariff evasion schemes may escalate amid the expanded tariff regime. Companies engaged in international trade are urged to enhance compliance programs and maintain thorough documentation to avoid criminal penalties, which can include hefty fines and imprisonment. These enforcement efforts occur even as some of the tariffs' legality faces legal challenges, underscoring the administration’s commitment to enforcing its trade policies robustly.