Key Takeaways

• Gain a competitive edge by shifting to local manufacturing to avoid new international tariffs.
• Audit all your “Made in USA” marketing claims to ensure they comply with stricter FTC regulations.
• Preserve customer loyalty by clearly communicating the reasons behind any necessary price adjustments.
• Identify new growth opportunities for your startup created by recent manufacturing tax breaks.

According to a Digital Commerce 360 report, e-commerce penetration in the US surpassed 22% in 2024. Furthermore, sales exceeded $1.19 trillion, more than double their standing five years ago. Lately, the sector has come into the limelight from a global and socio-political perspective. Close relationships with major international e-commerce companies, such as Alibaba from China, have sparked discussions about their impact on the local economy and society as a whole.

Unsurprisingly, President Donald Trump has initiated far-reaching regulatory changes that warrant close attention from businesses. Being prepared will help players form a strategy for navigating these changes while maintaining their position.

No More Duty-Free Treatment for Non-Postal Imports

E-commerce giants like Amazon and Alibaba could face considerable difficulties with this one.

Earlier in 2025, President Donald Trump decided to suspend the duty-free provision for non-postal imports. It covers all items not sent via post and meeting the threshold of $800 or less. The possibility of reversal is low, since he has already signed the executive order. The White House has announced that the new policy will come into effect on August 29, 2025.

So, what was the reason for this big change? The President claims that this policy will stop criminal organizations from misusing trade platforms to peddle illegal substances. News reports have highlighted the trafficking of items like fentanyl and opioids in the past.

That said, this regulatory upgrade will affect low-cost shipments from Asia and other countries. Many firms availed of the tariff exemption to improve their profit margins, which is now no longer possible. 

Moreover, the changes will also affect customs, possibly overloading it again and increasing administrative roadblocks. (After all, the original duty-free treatment had come into effect to streamline customs.)

The way ahead:

The removal of the de minimis provision will impact businesses that rely on cheap imports from China and other Asian countries. Firms will need to reconsider whether setting up a local manufacturing base may prove more cost-effective after the new regulation comes into effect. 

Pricing strategies may also undergo revision, and consumers are unlikely to like it. This calls for a reevaluation of marketing communication to convey the reasons and rationale behind the elevated price points.

Increased FTC Scrutiny of Made-in-USA Products

The Trump administration is also beating down on products whose domestic manufacturing claims are dubious. The FTC (Federal Trade Commission) is informing retailers that their items are under high scrutiny for violations. The checks span categories, from personal care products to footwear.

According to Section 5 of the FTC Act, deceptive advertising is an offence. In fact, Reuters reports that several lawsuits have already sprung up against unlawful product claims.

The ambit of increased scrutiny covers any products that make claims similar to “Made in the United States.” So, they could claim to be American-made or USA-crafted. Such claims are legitimate only when (most) all the product components are sourced and processed in the US.

The way ahead:

This situation calls for a closer assessment of a firm’s marketing communication across various channels. The company could be making claims without having substantial evidence to support them. 

In these circumstances, regulatory bodies and competitors will both be eagle-eyed for potential loopholes. It can become a risky situation, creating a reputational crisis unless business leaders are cautious about compliance.

More companies now use registered agent services to keep updated with legal and compliance requirements. It guarantees that legal notices or government correspondence don’t get lost amid the daily chaos of managing an e-commerce business.

According to The Farm Soho, statutory agents can also help businesses meet state requirements even when they don’t have physical presence. This benefit can be helpful for e-commerce firms, which often conduct business activities across states. Missing legal notifications can increase the chances of a default judgment. 

The Big Beautiful Bill Brings  Cuts for Many Businesses

The uniquely named bill announced in July 2025 has redirected funds from the federal budget in unprecedented ways. Socio-political circles are animatedly discussing who stands to win and lose from the changes. 

For example, the bill announced tax credits sunsets for alternative fuel refueling and energy-efficient changes made to properties. The cuts to green-energy initiatives and food stamps, in particular, sting the most.

In contrast, manufacturing may get a boost due to new tax breaks in the US. Those who invest in startups also stand to gain as they are exempt from paying capital gains taxes for selling up to $15 million of their stake. 

The way ahead:

The changing regulatory landscape could bode well for new e-commerce companies looking to source from local manufacturers. However, it demands discretion from business owners in planning future investments cautiously.

For example, the bill does not promise lucrative avenues for firms investing in sustainability initiatives. The environmental repercussions of this development are open to debate.

A lot is brewing in America’s business scene nowadays, from new regulations that encourage some sectors but dampen others. E-commerce is a competitive sector with numerous players emerging every year. It will be interesting to see how these regulatory changes pan out as firms from around the globe vie for consumer attention.

Frequently Asked Questions

What is the biggest regulatory change affecting ecommerce imports?
The US government has suspended the duty-free provision for non-postal imports valued at $800 or less. This change means that many low-cost items shipped from other countries, particularly from Asia, will now be subject to import taxes, which could increase costs for businesses.

How can my ecommerce business prepare for the end of duty-free shipments?
You should begin by evaluating your supply chain to see if sourcing from local manufacturers is now more cost-effective. It is also a good time to review your pricing strategy and prepare clear communications for your customers explaining any potential price increases due to the new tariffs.

What does the increased FTC scrutiny on “Made-in-USA” claims mean for my store?
The Federal Trade Commission is now more closely examining products that claim to be American-made. To comply, almost all of a product’s components and processing must be of US origin. You should carefully review your marketing materials to avoid making deceptive claims that could lead to legal issues.

Is it true that any product assembled in America can be labeled “Made in the USA”?
This is a common misconception. For a product to legally carry the “Made in the USA” label, it must be “all or virtually all” made in the country. This means that simply assembling foreign parts in the US is not enough to qualify and could result in penalties.

How does the new “Big Beautiful Bill” affect ecommerce startups?
This bill introduces new tax breaks that benefit domestic manufacturing and investors in new companies. If you are a startup that sources products locally, you may find new financial incentives, while investors in your business could be exempt from some capital gains taxes.

Will the new regulations make it harder to run a sustainable ecommerce brand?
The bill includes tax credit sunsets for some energy-efficient initiatives, which might reduce incentives for green investments. Brands focused on sustainability may need to find new ways to fund their environmental goals without relying on previous government tax benefits.

Why would an ecommerce business need a registered agent service?
A registered agent service accepts official legal documents and government correspondence on your company’s behalf. For an ecommerce business that operates across multiple states without a physical office in each, this ensures you never miss an important legal notice or compliance deadline.

Will the removal of the duty-free provision cause shipping delays?
The original duty-free policy was created to help streamline the customs process. With its removal, the volume of shipments needing inspection will increase, which may overload customs agencies and potentially lead to new administrative delays for imported goods.

How will these changes impact my store’s pricing and profit margins?
If your business relies on importing low-cost goods from Asia, the end of the duty-free provision will likely increase your costs. You will need to decide whether to absorb these costs, which would reduce your profit margins, or pass them on to consumers through higher prices.

Besides tariffs, how else do these policies encourage local manufacturing?
The combination of new import duties and tax breaks for domestic manufacturing creates a strong financial incentive to produce goods within the US. This two-sided approach aims to make American-made products more competitive by increasing the cost of foreign goods while lowering the cost of local production.