US Customs and Border Protection (CBP) has seen a spike in reports of tariff dodging since Trump slapped new duties on over 100 countries. From March to May, CBP’s e-Allegations tipline got 542 complaints about duty evasion, a 160% increase from the same period in 2024. Here’s what this really means: importers are getting more desperate and creative to cut costs, which isn’t exactly a new circus in the trade world.
Importers have always toyed with the rules—mislabeling origins, values, and product nature. Trump’s tariffs just pushed more firms into this legally risky game. CBP also got 242 tips on other violations like counterfeit goods, a 42% increase. It’s clear that desperate times are pushing companies to take desperate measures.
Trade attorney Jennifer Diaz says her firm files a lot of these e-Allegations for clients, and CBP does take them seriously. It can take up to six months to vet a claim, but when CBP nails it, it can wipe out those unfairly low prices. Level playing fields sound nice, but don’t hold your breath for instant results.
Whether CBP can handle this tip surge is another story. Congress hasn’t finalized the One Big Beautiful Bill Act to boost border staffing and resources. As of April, CBP’s audits and penalties were on track with past years. Basically, don’t expect a crackdown until someone signs more funds into law.
A Treasury audit last year showed CBP wasn’t tracking e-Allegations outcomes well and suggested they need better training. From 2018 to 2020, CBP confirmed only 68 out of over 900 tips, with no clear picture on collecting an estimated $65 million in unpaid duties. The agency claims improvements are underway, but let’s just say the jury’s still out.
The enforcement data is crucial because without it, Trump’s tariffs won’t hit their goals of boosting revenue and US manufacturing. Companies playing by the rules could lose out if their competitors get away with evasion. Violators face charges and hefty fines, but if history is any guide, some will slip through the cracks.
CBP spokesperson Trish Driscoll wouldn’t comment on ongoing investigations, citing law enforcement sensitivities. The agency uses data analytics, risk-based targeting, audits, and government coordination to spot evasion patterns. Sounds good on paper, but how effective it is remains to be seen.
Since Trump’s tariff announcements in February, importers have flooded online forums with advice on dodging duties. Consultants say some clients have received offers from foreign partners to skirt tariffs with shady tactics. Legal methods like shifting manufacturing or changing product components exist but are costly. The quick fixes might break the law—like lying about prices or routing goods through countries with lower tariffs.
Whistleblowers can earn up to $250,000 through e-Allegations or more via qui tam lawsuits under the False Claims Act, although that’s a legal maze. Even with more tips, many violations likely go unreported. CBP processes about 10 million customs declarations every three months, with goods valued in the hundreds of billions. From last October to April, CBP collected $82 billion in tariffs, $14 billion from Trump’s policies. The real loss to evasion? Probably something we’ll never fully know.
