One Big Beautiful Bill; Its Benefits and Drawbacks to International Trade
- Schulz Trade Law
- Jul 2
- 2 min read
Updated: Jul 3
One Big Beautiful Bill; Its Benefits and Drawbacks to International Trade
July 2, 2025
The One Big Beautiful Bill Act (OBBBA) is a 2025 legislative proposal to boost U.S. manufacturing, support small businesses, and strengthen domestic supply chains. While it offers benefits, it also poses challenges for importers and small to medium enterprises (SMEs). Schulz Trade Law PLLC is tracking these developments to help trade businesses adapt.
What Is the OBBBA?
The OBBBA aims to:
Revitalize U.S. manufacturing through incentives for domestic production.
Support small and family-owned businesses with tax relief.
Enhance supply chain resilience by prioritizing U.S.-based sourcing.
Combined with recent tariffs on foreign goods, the act could reshape trade dynamics, impacting costs and market access.
Key Provisions of the One Big Beautiful Bill
Tax Incentives
Permanent 199A Deduction: A 20% pass-through income deduction for wholesale distributors and family-owned firms, ensuring long-term tax savings.
Enhanced Estate Tax Exemptions: Higher exemptions ease the burden on family businesses during generational transfers.
Manufacturing Support
Grants and loans for factory modernization.
Tax credits for hiring and training U.S. workers.
Incentives for reshoring production.
Supply Chain Resilience
Investments in critical industries like semiconductors.
Incentives for domestic inventory and diversified sourcing.
Opportunities
SME Growth: Tax savings enable reinvestment in technology, hiring, or expansion.
Manufacturing Edge: Domestic producers gain cost advantages through grants and credits.
Resilient Supply Chains: Reduced reliance on global suppliers enhances stability.
Challenges
Importer Strain: Tariffs and domestic focus raise costs for imported goods, squeezing margins.
SME Pressures: Import-dependent SMEs face higher costs and compliance burdens.
Consumer Impact: Higher prices may reduce demand, especially for lower-income households.
Supply Chain Shifts: Reshoring disrupts global sourcing, requiring new supplier networks.
Strategies for Trade Businesses
Assess Tariff Exposure: Review supply chains to identify tariff impacts and explore domestic or tariff-exempt suppliers.
Maximize Tax Benefits: Use 199A and estate tax savings for growth or efficiency upgrades.
Diversify Supply Chains: Source from domestic or nearshore vendors to reduce risks.
Strengthen Compliance: Audit import/export processes and train staff on trade regulations.
Monitor Trends: Stay updated on tariffs and market shifts with expert guidance.
Conclusion
The OBBBA offers opportunities for trade businesses but requires strategic planning to navigate tariffs and supply chain shifts. Schulz Trade Law PLLC is here to help you adapt and thrive. Act now to stay competitive in this evolving trade environment.
How Schulz Trade Law Can Help
Schulz Trade Law PLLC offers tailored support, including:
Tariff and cost analysis.
Supply chain optimization.
Compliance and tax incentive guidance.
About Schulz Trade Law
We are a dedicated team of trade law professionals, committed to helping businesses navigate the complexities of international regulations and tariffs. With deep industry knowledge and a client-first approach, we provide clear, actionable insights to protect your interests and drive success in a dynamic global market.
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Contact us today for guidance on tariffs and regulations to safeguard your business.
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