How does this apply to tools used to create the items I am selling? Can I claim the expenses of these items also?
No, not directly.
Equipment used in the manufacture of the product you sell is a business asset and gets entered in the Business Assets section. They get depreciated over time. How much time depends on the MACRS classification (type) of equipment you have and it's expected life span as defined in MACRS. It's all spelled out in IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf. Since it appears you purchased the equipment years ago (I may be wrong on that assuption) the cost basis of the equipment will be it's FMV at the time it was placed in service in the business, which is generally less than what you paid for it years ago.
