Tariffs Take Hold Raising The Specter Of Criminal And Civil Tariff Enforcement

• Published date: 18 August 2025
• Subject Matter: International Law, Criminal Law, International Trade & Investment, White Collar Crime, Anti-Corruption & Fraud
• Law Firm: WilmerHale
• Author: Mr Neena Shenai, Kimberley Parker, Michael Mugmon, Matthew Benedetto, Christopher Cestaro, Tom B. Davidson and Heather Hedges

Seven months into President Donald Trump's second administration, a new trade paradigm is emerging that presents challenges for everyone involved in bringing products into the United States. With increasingly complex trade policy levying unprecedented tariff rates'and in light of recent changes that demonstrate the Trump Administration's increased focus on criminal and civil enforcement of trade laws'businesses and individuals will need to be mindful of the increasing potential costs of noncompliance and take steps to reduce the risk of becoming the target of an enforcement action.

On August 7, 2025, a new tranche of tariffs took effect on more than 90 countries, including some of America's largest trading partners. As WilmerHale recently explained, the new International Emergency Economic Powers Act's (IEEPA¹ reciprocal tariff rates range between 10% and 41%, with imports from Laos, Myanmar (Burma), Switzerland, and Syria receiving the highest rates (40%, 40%, 39%, and 41%, respectively). Imports from Brazil, targeted under a separate IEEPA order, now face an additional 50% tariff. Sky-high sectoral tariffs have also been imposed in recent months, such as 50% tariffs on aluminum, steel, and copper, and more are expected on products such as semiconductors and pharmaceuticals.² After IEEPA tariffs rose to 145% on China in April, the United States agreed to drop tariffs to 30% on China to allow for negotiations through August 12; the truce has just been extended for 90 days.

Beyond the initial shock of the new tariff rates, all signs point to a regulatory and enforcement environment in which importers and buyers could now face heightened civil and criminal tariff and customs enforcement. In recent weeks, the Department of Justice (DOJ) has announced that it is forming the Market, Government, and Consumer Fraud (MGCF) Unit to focus on the investigation and prosecution of tariff evasion. The creation of the new MGCF Unit will likely increase DOJ's use of its criminal authority to punish trade-related misconduct'increasing enforcement risks for companies with global supply chains. As WilmerHale previously explained, businesses and individuals also face elevated risk of civil liability through DOJ's stated interest and now expanded use of the False Claims Act (FCA) to pursue trade violations, as well as from qui tam FCA actions brought by private citizens (relators).

Increased tariff enforcement is expected to extend beyond importers. Buyers or others involved in import transactions may also be subject to increased scrutiny, raising the importance of robust, well-documented compliance programs.³

Sharpened Criminal and Civil Customs Enforcement Tools

In tandem with increased tariffs, DOJ is shifting resources to its new MGCF Unit to pursue tariff evasion and fraud. The MGCF Unit will be located within the Fraud Section of DOJ's Criminal Division and will replace the Market Integrity and Market Fraud (MIMF) Unit. The former MIMF Unit focused efforts on investigating procurement and securities fraud. In July, Matthew Galeotti, head of DOJ's Criminal Division, announced that DOJ's Fraud Section would add "significant personnel" from the Consumer Protection Branch to the existing roster of 35 prosecutors within the former MIMF Unit to create the new MGCF Unit.⁴ The additional resources and sharper focus on trade fraud demonstrate DOJ's intent to move quickly and expansively to bring criminal trade cases.

DOJ derives its authority to bring criminal trade fraud cases under several statutes, including 18 U.S.C. ' 542 (entry of goods by means of false statements) and 18 U.S.C. ' 545 (smuggling goods into the United States), as well as traditional criminal laws, including 18 U.S.C. ' 1001 (statements or entries generally) and 18 U.S.C. ' 1343 (wire fraud), among others. Criminal trade fraud may take several forms, including knowingly and willingly (i) disguising country of origin (via transshipping or mislabeling goods), (ii) undervaluing imported goods, and/or (iii) misclassifying goods...