Welcome back to another episode of Gun Industry Insider—today is March 21, 2025. I’m your host, Ray Toofan. Today’s episode is packed with info for shop owners, reps, and gunsmiths. We’ll go over recent developments on residency rules for background checks, the new tariffs that could hike your costs, and the court ruling that might open handgun sales to younger buyers. Let’s get started.

Beginning with some regulatory news that’s been making the rounds—specifically residency rules for buying guns. If you’re running a shop or dealing with customers, you’ve probably hit this issue more than once. We’re talking about customers who don’t have a regular house address—military people shifting from base to base, RV travelers living on the road, students in dorms with no fixed spot to call home. Right now, ATF rules are pretty rigid: the Form 4473 needs a physical address, no P.O. Boxes or private mailboxes allowed. It doesn’t matter if they’re an upstanding citizen with a clean background check—without a physical address that meets ATF requirements, they can’t make the purchase. You’re stuck watching a sale fall apart, and they’re walking out frustrated, or maybe to go get additional documentation but never return. I’ve seen it myself—a guy comes in, cash in hand, ready to pick up a pistol, but doesn’t have the paperwork to prove physical residency, and that’s the end of it.

There’s a push to sort this out with the Traveler’s Gun Rights Act—H.R. 2060 in the House, S. 966 in the Senate. It’s been kicking around Congress for a bit, and the plan is straightforward: let buyers list P.O. Boxes or private mailboxes, same as they do on driver’s licenses or state IDs. The NSSF agrees with the premise, saying it’s a practical fix for people who don’t live the usual way but still follow every rule. If it goes through, that officer on leave could grab a rifle without jumping through hoops, or the out-of-state college kid could pick up a concealed carry piece without a problem. For shop owners, it’ll mean fewer lost sales—no more turning away good customers just because their address doesn’t fit the ATF requirements. Online orders could get easier too with the customers knowing they can use their PO Box or private mailbox as proof of residency. 

Not everyone’s on the same page, though. Some are worried it could make it tougher to keep tabs on who’s buying what, especially with states like Colorado and Connecticut pushing harder on gun laws. Also, it may complicate things with the FBI trace requests when an address is given that doesn’t correspond to a residence. However, at the end of the day, it doesn’t change much—background checks are still doing the heavy lifting, catching anyone sketchy, P.O. Box or not. As of March 21, it’s still up in the air—no vote yet, just back-and-forth in Congress. If it does pass, you’d need to adjust a few things—train your crew to spot these alternate addresses, maybe update your system so it doesn’t flag them as errors. Could bring more people through your door or clicking on your site, especially if you’re in an area with a decent chunk of military or students. Gunsmiths might see a little bump too—more buyers could mean more custom jobs, being able to acquire firearms from individuals with these non-standard addresses. We’ll keep you informed as to the progress of these bills.

Now let’s talk about something that could have some significant future impacts in the firearms industry—the new tariffs on steel and aluminum. If you’re a shop owner, this probably hasn’t affected your purchases just yet as prices are still holding steady. President Trump announced 25% tariffs on imported steel and aluminum back in early March, and they went into effect on March 15. Why does this matter? Steel and aluminum are the core of gun manufacturing—gun frames, barrels, springs, you name it. When the price of those materials goes up, it’s not just the manufacturers who feel it; it hits everyone down the line: the distributors, retailers, and consumers.

Right now, manufacturers who bring in steel and aluminum from overseas are looking at cost increases of 20-30%. That’s a significant jump, and they’re not able to just absorb it. Some are already planning price hikes. Think about those double-stack 1911 pistols you can’t keep in stock or those tactical rifles that everyone’s after—those could cost significantly more soon. Ammo’s not safe either; prices might head up, and that could mean your customers are spending more just to hit the range. Then there’s the potential supply chain mess—Canada and other countries are pushing back with their own tariffs, which could slow down how fast materials get here. 

Looking further out, this could change how things work. Some manufacturers might ditch imported materials and turn to U.S. steel and aluminum to skip the tariffs. That could give domestic producers a boost, but it’s not as simple as flipping a switch. Stateside options cost more, otherwise these manufacturers would already be using domestic materials. This might force some companies to get creative—maybe they’ll experiment with different materials or figure out ways to build guns more efficiently to keep costs in check. It’s anyone’s guess how it’ll affect manufacturers, but it’s definitely worth watching.

If you run a shop, and these tariffs remain in place, wholesale prices will start to creep up. You might need to look at those price tags or hunt for ways to save elsewhere—maybe lean on products that aren’t taking as big a hit or snag some bulk deals. More than likely, the guns that are heavy on polymer won’t be affected as much. Reps, you may start getting calls from shops wanting better terms or bulk deals. And gunsmiths, if folks are spending more on guns, they might not have as much left for custom jobs. It’s like a wave rolling through, touching everyone in its path.

There’s a bigger picture here too. These tariffs are part of a broader trade policy, and more could be coming. If you’re tied into international sales or working with partners overseas, this might stir things up in ways we haven’t seen yet. It’s not just a domestic issue—it’s global, and that could mean more surprises down the road.

Not everyone’s on the same page about this either. Some in the industry are all for it, saying it’ll protect U.S. jobs and keep production here. Others are stressing over the higher costs and wondering if this could spark a trade war that makes everything worse. There’s no clear winner in the argument yet—it’s just a lot of back-and-forth. What’s your take? Are these tariffs worth the hassle, or are they piling on problems we don’t need? Let me know what you think.

Now I want to get into an important topic for shop owners: the Fifth Circuit’s recent ruling on the handgun-purchase prohibition for 18-to-20-year-olds. This decision will have significant implications for gun rights, sales, transfers, and the industry as a whole.

If you’re not up to date on the latest news, on January 30, 2025, the Fifth Circuit Court of Appeals ruled that federal laws prohibiting FFLs from selling handguns to individuals aged 18 to 20 violate the Second Amendment. The court used the text-and-history test from New York State Rifle and Pistol Association v. Bruen, which stresses historical context in Second Amendment cases. The judges concluded that the right to "keep and bear arms" inherently includes the right to purchase them, and that 18-to-20-year-olds are part of "the people" protected by the Amendment. Historically, this age group was required to possess arms for militia service, and there were no founding-era laws restricting their ability to buy firearms. The court found that later 19th-century restrictions don’t establish a historical tradition sufficient to justify the current ban.

Despite this ruling, the federal prohibition is still in effect nationwide, even within the Fifth Circuit’s jurisdiction, which includes Texas, Louisiana, and Mississippi. This is because the DOJ sought a stay on the decision, delaying its enforcement while they appeal to the U.S. Supreme Court. As of now, the ATF hasn’t updated its guidance, and FFL need to continue to adhere to the existing law to avoid legal risks and license revocation. For the time being, 18-to-20-year-olds still can’t buy handguns from licensed dealers.

The DOJ’s stay has kept the ban in place, but the fight is not over yet. The NRA, GOA, and the FPC are pushing hard to challenge this prohibition in other circuits and, if needed, at the Supreme Court. There’s also talk of state-level action, particularly in Texas, where legislators are considering bills to align with the Fifth Circuit’s decision. However, Congress hasn’t made any moves to amend the law, and the ATF remains cautious, sticking to the status quo until there’s a final resolution.

For the industry, once the ban is eventually lifted, which is very likely with the Trump administration, it will expand the market by 5 to 10 percent, according to estimates from the NSSF. That will be a significant boost for shop owners, distributors, and manufacturers. However, FFLs need to wait for this issue to be resolved. Don’t act on the ruling prematurely otherwise you could be in-store for big problems from the ATF.

Looking ahead, there are a few possible outcomes. We might see a circuit split if other courts rule differently, which will increase the pressure for a Supreme Court decision. The Supreme Court could take up the case in its 2025-26 term, and if it does, it will very likely strike down the ban nationwide, especially given the Court’s conservative majority and its stance in Bruen. There’s also the possibility of legislative action, although it’s likely that the DOJ and ATF will let the courts make the decision here.

We’re monitoring the legal developments here, if the DOJ proceed with their appeal, if they back off, or if the Supreme Court will step in to settle this once and for all. We’re also tracking how states are responding—some might push back, while others could jump on the bandwagon. Plus, with new lawsuits likely to pop up in other circuits, this fight isn’t over yet. We’ll be here to break down every development as it happens. Stay tuned for updates.

We’ve covered quite a bit today—residency rules that could shake up your customer base, new tariffs hitting your margins, and the Fifth Circuit ruling on handgun sales to younger buyers. Got thoughts or ideas for future episodes? Email us at insider@gunindustryinsider.com or hit us up on X at @GunInsider. Stay tuned for our next episode, where we’ll be diving into fresh developments that could impact your shop or sales calls. Thanks for listening. Until next time!