False Claims Act seen as potential tool to enforce tariffs
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While their form has been in flux, tariffs will seemingly be a fact of life in the second Trump administration.
As they take effect, the incentive to try to evade them will follow. Eventually, attorneys agree, that will mean a new wave of “reverse” False Claims Act cases: Instead of taking too much from the government, the alleged violation will be giving too little.
Indeed, to the extent that there are tea leaves to be read, the second Trump administration may be gearing up to use the False Claims Act even more aggressively than it had in its first term.
Among the clues are remarks by Deputy Assistant Attorney General Michael Granston in a “fireside chat” at a recent conference focused on the False Claims Act. The comments were perceived as extending an open invitation to relators’ attorneys to bring FCA qui tam actions on behalf of whistleblowers to combat customs duty evasion.
Perhaps an even stronger signal — though not immediately recognizable as related — came from an executive order the president issued on his second day in office.
The order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunities” targets diversity, equity and inclusion policies. It requires the head of each federal agency to include in every contract or grant award a term requiring the other party or grant recipient to agree that its compliance in all respects with all...
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