Tariffs may Drive Companies to Mislabel Products as “Made in USA”

With recent tariffs on imported goods, U.S. consumers may notice price increases across a wide range of products. To offset concerns about rising costs, some manufacturers are turning to “Made in the USA” labels to attract buyers. But not every product with this label genuinely meets the legal definition of domestic manufacturing.

Understanding what qualifies as Made in the USA can help protect consumers from false advertising and misleading product claims.

What Does “Made in the USA” Actually Mean?

The Federal Trade Commission (FTC) has specific rules that determine whether a product can legally display a “Made in USA” label. These guidelines are also supported by consumer protection laws, such as California’s Consumers Legal Remedies Act (CLRA).

According to the FTC, a product must meet all of the following criteria to be labeled “Made in the USA”:

• Final assembly or processing must occur within the United States
• All significant manufacturing processes must take place in the U.S.
• “All or virtually all” components must be made and sourced from the U.S.

Companies that ignore these rules may still attempt to benefit from patriotic branding, even if their products contain critical parts that are imported. For example, a shoe labeled “Made in USA” cannot be truly considered domestic if the laces—or any other significant component—are manufactured abroad, even if other parts of the product are made in the USA.

How Tariffs on Imported Goods Affect “Made in USA” Labeling

Many U.S. manufacturers rely on imported materials and tools during production. With increased tariffs on imported goods, domestic producers may face higher costs—even for small or seemingly insignificant parts. This pressure could lead some companies to falsely label products as Made in the USA in order to justify price increases and appeal to consumers who prioritize buying American-made items.

However, misleading labels not only violate FTC guidelines, they also deceive consumers into spending more on products that are not actually made in the U.S.

While the FTC enforces standards for “Made in the USA” claims, some businesses continue to push the limits or outright misrepresent their products. This kind of false advertising can result in consumers unknowingly overpaying for items that fail to meet domestic manufacturing standards.

Protecting Consumers from False “Made in USA” Claims

At Shub Johns & Holbrook LLP, we specialize in consumer protection law and have handled numerous false advertising and misrepresentation class action lawsuits. We believe companies should be held accountable for dishonest product packaging and marketing practices.

If a product is labeled “Made in the USA,” the burden should not fall on consumers to investigate the truth. The label should meet FTC standards, plain and simple. Did you purchase a product claiming to be Made in the USA, only to find out it may not meet the required standards? Do you feel the company misrepresented this product? You may have a valid claim under consumer protection laws. Fill out our form and speak with our team about your potential claim.