Vietnam Maintains a 20% Export Tariff to the U.S.: Opportunities and Risks Go Hand in Hand

Recently, Vietnam and the United States reached an agreement to maintain a 20% export tariff on Vietnamese goods — a positive development, especially considering that several ASEAN countries such as Laos, Myanmar, Cambodia, and Thailand are facing export tariffs ranging from 36% to 40%.

This is a positive outcome, as the United States is currently Vietnam’s largest export market, accounting for over 30% of the country’s total export turnover — approximately USD 119.5 billion in 2024.

⚠️ However, Businesses Should Be Aware of Two Key Tariffs Currently Imposed by the United States:

1. Sectoral Tariffs – Ranging from 25% to 50%

These tariffs are applied based on industry, not country of origin. The U.S. is focusing on sectors that:

• Have a low rate of localization

• Rely heavily on raw materials from China

• Lack transparency in product origin documentation

These tariffs are often introduced following anti-dumping and anti-subsidy investigations.

2. Transshipment Tariffs – Up to 40%

This is a trade defense measure applied when the U.S. suspects that Chinese goods are being illegitimately rerouted through Vietnam.If a product undergoes only superficial changes—such as relabeling without substantial transformation—it may be subject to transshipment tariffs.

The challenge is that determining whether a product has been fraudulently transshipped is highly complex. Even legitimate Vietnamese manufacturers may be impacted, particularly those using a high proportion of Chinese raw materials but unable to demonstrate sufficient value-added processing.

💡 What Should Exporting Businesses Do?

1. Standardize and ensure transparency of Certificates of Origin (CO)

2. Diversify sourcing markets to reduce reliance on Chinese inputs

3. Increase localization and develop stronger domestic supply chains

🔍 While maintaining the 20% export tariff is a significant achievement, it is not the finish line. In a volatile global trade environment, Vietnamese exporters must proactively strengthen their supply chain compliance and legal documentation to avoid being mistakenly classified as transshipped goods.

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