WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) welcomed the launch of a cross-agency Department of Justice and Department of Homeland Security Trade Fraud Task Force, aimed at bringing robust enforcement against importers and other parties who seek to defraud the United States. The Task Force will augment the existing coordination mechanisms within these departments, to aggressively pursue enforcement actions against any parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy.
President Trump issued the “America First Trade Policy” on Inauguration Day, which “promotes investment and productivity, enhances our Nation’s industrial and technological advantages, defends our economic and national security, and — above all — benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.” CPA is proud to stand with an administration that is fully committed to holding parties accountable for their attempts to undermine honest American competitors.
Trade fraud and trade crime are pervasive and systemic, and American businesses including many CPA members have been harmed—losing sales, delaying investment, and cutting jobs. There is an urgent need for effective enforcement that stops ongoing schemes and holds violators accountable.
“The strongest deterrence comes from swift criminal prosecutions where the facts and law support them; when criminal action isn’t warranted, civil and administrative remedies should be applied decisively to recover revenues, disable schemes, and reinforce compliance,” said Zach Mottl, Chairman of CPA. “This announcement is a welcome step toward that standard, and we share the urgency to move credible cases promptly.”
This announcement also formalizes and expands interagency coordination already underway—including the Criminal Division’s May 12th guidance elevating trade, tariff, and customs fraud and broadening whistleblower pathways—and aligns with the legislative direction of the ‘Protecting American Industry and Labor from International Trade Crimes Act,’ (H.R. 9151) which unanimously passed the U.S. House last December. The bill would establish a new task force or similar structure within the DOJ’s Criminal Division to investigate and prosecute China’s trade-related crimes, and protect American workers and manufacturers. The bill was reintroduced in the current 119th Congress (H.R. 1869) by Rep. Ashley Hinson (R-IA-2), and co-led by the Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-MI-2) and Ranking Member Raja Krishnamoorthi (D-IL-8) – to strengthen enforcement and deterrence against evasion. CPA is highly supportive of these efforts as we see a growing commitment of resources and resolve to address systemic evasion.
What success could look like—together:
- When supported by the facts and law, timely criminal charges for organized or repeat evasion; when not, decisive civil/administrative actions, plus prompt seizures/forfeitures to disrupt networks.
- A clear, responsive CBP–HSI–DOJ referral and feedback channel for credible industry submissions, with shared expectations for follow-up.
- Periodic public updates on enforcement activity (e.g., cases opened, charges filed, penalties, seizures, collections) to help demonstrate momentum and deterrence.
- Early, visible outcomes in sectors where evasion most harms U.S. production and jobs.
CPA’s working group on trade crime stands ready to provide referrals, data, and technical context, and we welcome collaboration to channel industry intelligence into timely enforcement.
“As a fifth generation family-owned company that employs more than 1,800 hard working Americans, we applaud the formation of a trade fraud task force,” said Bradford Muller, Vice President of Corporate Communications at Charlotte Pipe and Foundry, a leading manufacturer of pipe and fittings for plumbing. “Charlotte Pipe has been a victim of illegally transshipped Chinese goods dumped in our markets for years. We have availed ourselves of every legal remedy at our disposal to enforce US trade law – yet the fraud continues unabated. It’s far past time we criminally prosecute willful, persistent bad actors who are targeting American jobs through nefarious means.”
“Plews & Edelmann—a 115-year-old, Illinois-based automotive aftermarket company—has sought accountability since 2021 in a case involving a Chinese competitor’s transshipment to evade U.S. tariffs. Despite strong advocacy for our case by the House Select Committee on the CCP, a DHS raid in 2024 and an on-going investigation by the DOJ, the competitor continues to operate in Ohio undeterred,” said David Rashid, Executive Chairman of Plews & Edelmann. “We welcome today’s announcement and all steps that lead to timely, decisive action against all trade law violators. Justice delayed is justice denied—not only for Plews, but for American jobs and the rule of law.”
“This is great news – M&B Metal Products Company, a fourth generation steel products company in Alabama, has been fighting illegal trade for fifteen years, filing numerous e-allegations, and numerous Enforce And Protect Act (EAPA) allegations,” said Milton M. Magnus, III, Chief Executive Officer of M&B Hangers. “Even though we were successful in proving evasion in every EAPA case we filed, the illegal activity continued, just under different names, and very little, if any, consequences to the companies and people who were evading the duties. With concentrated effort to bring these fraudsters to justice, hopefully this will encourage the importers to investigate where their product is actually produced, and that it is not evading any lawful duty owed to the US treasury.”
“For too long, trade cheats have treated our markets like a lawless frontier. This Task Force is an opportunity to finally hold them accountable,” said Christopher Carney, General Counsel of FDP Virginia, Inc., an auto industry executive whose company has struggled to rein in malign competitors. “Light is finally breaking through the abyss of trade law enforcement. We hope accountability and fairness can finally take root in U.S. commerce.”
“We welcome the long-overdue crackdown on trade fraud. This is a victory for American manufacturers and workers, and a necessary step to safeguard the President’s trade policy of putting America first,” said Betsy Natz, CEO of the American Kitchen Cabinet Association. “For years, dishonest importers have been ripping off our country with trade fraud. Finally, it’s getting the resources and attention it deserves. The domestic kitchen and bath cabinet manufacturers applaud the Administration for its tough stance on trade fraud and for advancing a big win for the President’s America First policy agenda. We’re stopping the cheating and putting America first—where it belongs.”
“As someone who began in U.S. textile manufacturing, I’ve seen how trade fraud, bad policy, and poor enforcement devastated American industries and cost millions of jobs,” said Ron Capranos, President of SHIP8 Inc. “Today, those same forces are crushing our retail and e-commerce sectors—thousands of stores have closed, and many U.S. online sellers are being pushed out by Chinese competitors using IP theft, price undercutting, and fake reviews on platforms like Amazon, which now hosts over 1,000,000 Chinese cross-border sellers after a decade of de minimis abuse. Nearly 20% of new U.S. warehouse leases in 2024 were signed by Chinese companies, giving them a direct foothold in our logistics supply chain and placing U.S. firms at a disadvantage. This is more than unfair competition—it is a national security threat. SHIP8 is proud to join other CPA members on the trade crime working group to support the Trade Fraud Task Force and stop these abuses, protect our supply chain, and restore integrity to trade.”
Because trade fraud not only deprives the government of vital revenue used to reinvest in America – but also threatens critical domestic industries and undermines consumer confidence – this weakens both our economy and our national security. CPA and its membership welcome the cross-agency work of the Trade Fraud Task Force, and look forward to working with the administration, and the Congress, to protect the American manufacturers and American workers that are at the very heart of this administration’s trade policy.
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