Since President Trump took office in January 2025, the White House has issued a series of Executive Orders (EOs) and announced numerous trade policies.  One such EO the President signed on his first day was an “American First Trade Policy Memorandum,” seeking the review of trade policy as well as investigations into unfair trade practices. The President further announced the implementation of tariffs of 10-25% for importation of goods from foreign countries, like China, Canada, and Mexico, and on products like steel and aluminum.  Add these policies to the Deputy Assistant Attorney General Michael Granston ’s recent statements that the Department of Justice will “aggressively” enforce the False Claims Act (FCA) on foreign trade issues, including the recently imposed tariffs, whistleblowers will likely play an oversized role in identifying violations of the President’s focus on government waste and fraud.

Trump’s Tariffs

These new policies may tempt importers to try to escape paying these tariffs.  If they did, that would potentially trigger an FCA violation. A tariff, which acts as a tax on imports, increases the customs duty to be paid on an import.  Entities that receive money from the government through fraudulent claims for payment may violate the FCA.   But the FCA also applies to an entity that “knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the Government.”  These types of claims are known as “reverse” false claims”.  Entities that seek to evade paying customs duties could be subject to FCA liability.  

The Buy American Act

The President’s American First Trade Policy also implicates the long standing Buy American Act (BAA).  The BAA and the False Claims Act (FCA) work together to ensure integrity and fairness in federal procurement processes. The BAA requires the federal government to give precedence to domestic goods in its purchases, while the FCA is a powerful tool to fight fraud against the federal.  government.   

The history of the Buy American Act, dating back to 1933, requires the federal government to favor U.S.-made products in its purchases.  The BAA aims to ensure that taxpayer money is used to support domestic industries and create jobs within the United States. The BAA applies to all federal purchases over a certain dollar amount and includes manufactured goods and other products. The key provision of the BAA requires government contractors to certify that their products meet BAA’s conditions, and they must present accurate information about the origin of materials.

The False Claims Act, originally dates to back to 1863 and through several amendments, makes possible for whistleblowers, known as “relators,” to file qui tam lawsuits on behalf of the government and share in any recovered funds. The FCA imposes liability for government contractors that knowingly submit false claims for payment to the government. 

The relationship between the Buy American Act and the False Claims Act lies in the compliance with the federal procurement regulations. The BAA’s preference for domestic goods can be weakened by fraudulent actions, such as government contractors misrepresenting the origin of materials to secure government contracts. When such fraud occurs, the FCA can be used to prosecute those responsible.

The Role of Whistleblowers

Whistleblowers play a crucial role in uncovering and addressing fraud related to the violation of the President’s tariffs and the BAA. Under the FCA’s qui tam provisions, a whistleblower can file a lawsuit on behalf of the government to expose fraudulent activities. The whistleblower, or relator, may be entitled to a share of the recovered funds as an incentive for their participation in the enforcement process.

At Keller Grover, we help whistleblowers expose fraud on the government and make sure public and private money gets to its intended beneficiaries. Through our confidential, free consultations, we advise potential whistleblowers about the best path forward from the very beginning. Our deep thirty-plus-year experience litigating both fraud and employment law uniquely equips us to represent whistleblowers.