Only business that deal in items subject to excise tax are require to pay.

No, not all business in the US pay an excise tax.This varies by state. There is usually excise tax on gasoline, tobacco, and alcohol. There are state excise taxes on all kinds of other things. As I don't know what state you are in, I can't help further...

My dad has a small business tying fishing lures and recently began selling duct tape wallets. He has to pay an excise tax of 10% on all items he sells.If I start a small business selling crafts and handmade jewelry will I also have to pay this tax?Doesn't this make American produced products more expensive and less able to compete with imports?Any explanations would be appreciated.