The second Trump administration’s aggressive tariff policy is playing out in more than just the Commerce Department. Framed under the administration’s commitment to fight “waste, fraud, and abuse,” the U.S. Department of Justice (“DOJ”) has signaled a new special interest in pursuing tariff evasion and customs fraud with one of its most powerful investigatory, civil and criminal enforcement tools: the False Claims Act (“FCA”). With the tariff landscape continuing to shift rapidly and unpredictably, businesses and their owners should take special care not only to develop and maintain effective compliance measures, but to be prepared to defend against onerous and costly investigation and enforcement efforts.
Recent Spike in Announced Customs Enforcement Actions Involving the FCA
While the government’s use of the FCA to pursue customs-based claims is not entirely new, recent months have seen a flurry of activity applying the FCA in the trade space. These cases have arisen across the country – from New Hampshire, to California, to Pennsylvania – and often stem from whistleblower complaints brought under the FCA’s qui tam provisions, which allow individuals, often current or former company insiders with alleged knowledge of potential trade violations to bring claims on behalf of the United States in exchange for a share of any potential payout.
Since March 2025, DOJ has announced three new settlements of FCA claims based on alleged customs evasion:
Banco do Brasil has asked Brazil's solicitor general to act against false claims that allege it is poised to face sanctions by the U.S. government because one of its clients is a judge sanctioned u...