A new bill is shaking up the e-commerce landscape, and no, it’s not about platforms, packaging, or Prime Day. It’s about your bottom line.
The One Big Beautiful Bill, signed into law on July 4, 2025, is already making waves across tax planning, shipping strategies, and inventory decisions. While it’s getting press for its broader political implications, there are crucial updates buried in the fine print that ecommerce founders, especially those selling on Shopify, Amazon, or Etsy, need to know.
We’ve broken down what’s changing, what it means, and what you can do now to stay ahead.
What U.S.-Based Sellers Should Know
Whether you’re a solo Shopify founder or a fast-growing Direct to Consumer brand, these four tax updates could impact your 2025 and 2026 returns and your strategic planning going forward.
- QBI Deduction is Here to Stay
The 20% pass-through deduction (Section 199A) was set to expire but it’s now permanent starting in 2026.
Why it matters: Keeps effective tax rates for LLCs and S Corps around 29.6%, instead of jumping to 37%. For most ecommerce founders, that’s a major win. - SALT Cap Raised to $40K
High-tax state sellers, rejoice: the State and Local Tax (SALT) deduction cap has been raised from $10,000 to $40,000 (through 2029).
Why it matters: More personal tax savings for sellers in CA, NY, NJ, and other states with steep local taxes.
Important clarification: The new $40K SALT deduction does phase out at higher income levels. Married couples with modified AGI up to $500,000 can claim the full $40,000 deduction. Above that, the deduction gradually decreases until it returns to the original $10,000 cap for very high earners. So while many sellers in high-tax states will benefit, those earning above the threshold will see a reduced deduction.
- Auto Loan Interest Deduction – But Make it American
A new above-the-line deduction allows up to $10,000/year for interest on vehicles assembled in the U.S.
Why it matters: Whether it’s a branded van, local delivery vehicle, or a personal car used for business errands, you’ll get a break, as long as it’s personally owned and assembled in the U.S. - De Minimis Import Threshold Eliminated
Starting July 1, 2027, the $800 duty-free threshold for low-value imported goods (Section 321) is gone.
Why it matters: If you’re importing low-cost items or components, prepare for higher landed costs. This may also help level the playing field with international competitors.
For Foreign-Owned Brands or Global Sellers
If you run a foreign-owned ecommerce business or handle cross-border transactions, these two provisions require immediate attention:
- 1% Remittance Tax
A new 1% excise tax will apply to outbound money transfers from U.S. entities, including wires, ACH, and even crypto.
Effective: January 1, 2026
Why it matters: If you’re paying overseas vendors or repatriating profits, this new tax could cut into your margins. Now is the time to rethink cash flow strategies and payment timing. - FDII Replaced with FDDEI
The Foreign-Derived Intangible Income (FDII) deduction is out. In comes FDDEI (Foreign-Derived Deduction Eligible Income), with revised rates and updated compliance requirements.
Effective: 2026 tax year
Why it matters: U.S.-based ecommerce brands serving international customers may see reduced tax benefits from housing intellectual property (like product design or branding) in the U.S. A tax strategy refresh may be in order.
What You Can Do Now
As always, change brings opportunity, if you’re prepared.
Here are three smart next steps:
- Model your 2026+ tax scenario
Run projections with your CPA or accounting team to understand how the permanent QBI deduction and SALT cap changes affect your take-home income. - Rethink your inventory strategy before 2027
The loss of the $800 import exemption could make importing low-cost SKUs more expensive. Consider restructuring your supply chain or moving fulfillment inside the U.S. - Structure cross-border payments before year-end
If you’re a foreign-owned brand or make large payments abroad, it may be worth sending funds before the 1% remittance tax kicks in on Jan 1, 2026.
Final Thoughts
The One Big Beautiful Bill is less about headlines and more about the fine print, especially for ecommerce entrepreneurs. With smart planning, these tax and trade shifts can be a springboard instead of a setback.
