Trump Signs Executive Order Targeting Customs Evasion, Tightens Tariff Enforcement
President Donald Trump signed an executive order Wednesday that aims to dramatically tighten customs enforcement, the latest salvo in his push to reinforce protectionist trade policies. The order, announced by the White House, directs Customs and Border Protection officers to use advanced technology to detect and block contraband and illegal goods from entering the U.S., and to ensure that all imports are accurately accounted for.
“This executive order is really the result of many years of our front-line officers and our trade professionals seeing the tricks and abuse that the companies that were trying to cheat the system have been using,” CBP Chief of Staff James Kernochan said in a call with reporters after the signing.
According to a White House statement, the order targets long-standing enforcement gaps, including importers using shell companies to obscure ownership, insufficient customs bond requirements, and the practice of routing shipments through a third country to conceal their true origin — a tactic often employed to evade duties. White House staff secretary Will Scharf said during the signing that the order is designed to give CBP more detailed information about importers-of-record (IORs) and ensure they correctly report what they bring into the country. Foreign companies shipping goods to the U.S. will also face stricter compliance requirements.
The crackdown comes amid a widening discrepancy in trade data: Bloomberg News previously reported a record $112 billion gap last year between what China reported exporting to the United States and what was declared to U.S. Customs. The order itself lists examples of noncompliance including “undervaluing imports, withholding critical information about IORs and the goods being imported, and avoiding payment of duties through various arrangements and schemes.”
A key element of the order is the expanded use of artificial intelligence. White House trade adviser Peter Navarro said the agency is moving toward real-time tracking of every ship and shipment leaving ports worldwide, processing “literally billions of bits of data” to flag potential tariff evasion, drug smuggling, or other contraband. Navarro stressed the revenue potential: “We’re literally going to be able to pick up tens and tens of billions of dollars just in tariff evasion alone.”
Wednesday’s executive order comes one day after the Trump administration proposed new tariffs of at least 10% on 60 economies accused of failing to curb imports produced with forced labor. That move was the first major step toward rebuilding Trump’s tariff agenda after his global duties were struck down by the Supreme Court, underscoring the administration’s willingness to use executive authority to reshape trade flows.
The order does not take effect immediately. Many regulatory changes will be developed with input from stakeholders across the trade industry, and some will require legislative action. CBP’s Kernochan said proposals are expected to be introduced over the next 45 days. “There’s a lot of sub-components to this executive order, and there’s a lot of regulation that’s going to be fleshed out in the next few months,” he said.
Analysts say the enforcement push could raise compliance costs for importers and disrupt supply chains, but also warn that aggressive unilateral action may provoke retaliation from trading partners and complicate global trade relations. With the 2026 midterm elections approaching, Trump is betting that tough-on-trade policies will resonate with his base, even as businesses brace for new layers of scrutiny at the border.
— With assistance from Bloomberg News reporters.