Tariffs are meant to level the playing field for American businesses, but for small and mid-sized companies the reality often looks very different. The latest changes in U.S. tariff policy have increased costs for legitimate importers while doing little to stop counterfeiters and grey-market sellers. In fact, these opportunistic actors often exploit tariff hikes to flood online marketplaces with cheaper knock-offs, making it harder than ever for authentic brands to compete.
For SMBs the stakes could not be higher, lost revenue, eroded margins, and damaged customer trust. The question is no longer if counterfeiters will target your products, it is when. And in this new trade landscape, protecting your intellectual property is not just smart, it is essential for survival.
The hidden cost of tariffs for SMBs
For large corporations, increased tariffs are a headache. For SMBs, they can be a breaking point. Higher import costs often force small businesses to raise prices or cut margins, reducing competitiveness.
For example, if you purchase parts or completed goods for your products overseas:
Legitimate Product : Sells for $100
Cheaper Counterfeit : Sells for $10
This is a $90 difference to the consumer. If we apply a 50% tariff to these prices:
Legitimate Product : Sells for $150 after 50% tariff added
Cheaper Counterfeit : Sells for $15 after 50% tariff added
This is now a $135 difference to the consumer
In this case the price gap has increased by 50%
When tariffs raise the cost of importing authentic goods, brands must increase prices to cover higher costs.
Counterfeiters, who already operate outside legal trade and compliance, do not pay tariffs or follow regulations. This makes their fake products appear much cheaper in comparison.
Unfortunately, counterfeiters see this as an opportunity. They can flood marketplaces with cheaper knock-offs, bypassing tariffs entirely and undercutting legitimate sellers.
This shift not only eats into revenue but also damages customer trust. When a consumer unknowingly buys a counterfeit product, it is the authentic brand’s reputation that suffers. For businesses that have worked tirelessly to build credibility, this is an enormous risk.
Why traditional takedowns are not enough
Many SMBs turn to manual takedown processes when counterfeits appear online. But in today’s tariff environment, the pace and scale of infringement have increased dramatically. Manual methods are too slow and often reactive, by the time one listing is removed, dozens more have appeared.
Relying on outdated tools or “wait and see” approaches leaves businesses exposed, especially when competitors in the grey market are aggressively pushing copycat products through major platforms like Amazon, eBay, and social media marketplaces.
Protecting your brand with IP Moat
This is where IP Moat comes in. We help SMBs stay ahead of counterfeiters with advanced counterfeit detection and fast removals across global marketplaces. Instead of chasing counterfeit listings one by one, our technology scans at scale, flags infringing products, and enforces takedowns quickly so your business can focus on growth.
Beyond detection, IP Moat helps you:
- Monitor 24/7 to spot infringements the moment they surface.
- Remove fake listings quickly and effectively, reducing the burden on small teams.
- Access comprehensive reports to show investors, partners, and customers how your brand is protected.
The path forward
The new tariff environment may make it harder for SMBs to compete, but giving up market share to counterfeiters is not an option. Protecting your intellectual property is no longer just a legal matter, it is a survival strategy.
With the right tools, small businesses can defend their brands, protect customer trust, and continue to grow despite the changing trade landscape.
Get a free audit with IP Moat today and see how quickly you can detect counterfeits and remove fake listings before they damage your business.
