Fighting Trade Cheats Act of 2026

Key Points

• This bill significantly increases the fines for companies that lie or are extremely careless when bringing goods into the United States. Fines for fraud would jump to three times the value of the items being imported, making it much more expensive to cheat on trade rules.
• Companies caught committing fraud would be banned from importing any goods into the U.S. for five years, while those who are 'grossly negligent' would face a two-year ban. These bans also apply to any partner companies or shell corporations linked to the violator to prevent them from simply changing their name to keep doing business.
• For the first time, American businesses, unions, and trade groups could sue 'trade cheats' directly in federal court. If they win, they can collect three times the amount of money they lost because of the unfair competition, plus their legal fees.
• The policy aims to protect American workers and manufacturers by making sure foreign competitors follow the law. By increasing penalties and allowing private lawsuits, the bill seeks to stop companies from dodging taxes or safety rules to sell products at unfairly low prices.
• The government would also revoke the official identification numbers used by importers who break these rules. This makes it harder for bad actors to hide behind complicated business structures or fake companies to get their products past customs agents.