Vietnam Tariffs 2026: The 12.5% US Rate and What Exporters Should Do

Vinex Official

1 day ago

8 min read

As of November 2026, most goods made in Vietnam and imported into the United States pay an additional 12.5% tariff under Section 301 of the Trade Act of 1974, on top of the normal US import duty for the product (EY, 24 July 2026; Vietnam Briefing, 26 July 2026). This rate took effect on 24 July 2026. The 20% "reciprocal" tariff that applied from August 2025 is no longer collected, because the US Supreme Court ruled on 20 February 2026 that the emergency-powers law used to impose it does not authorise tariffs. Steel, aluminium, copper, lumber and automobile products follow separate Section 232 tariffs instead.

This guide explains the current US tariff on Vietnamese goods, how it changed between April 2025 and July 2026, what happened to the 40% transshipment rate, and what exporters and foreign investors in Vietnam should do now.

Key Takeaways

Most Vietnamese goods entering the US now pay the normal US (MFN) duty plus an additional 12.5% Section 301 tariff, effective 24 July 2026.
The 20% reciprocal tariff was imposed under emergency powers (IEEPA). The US stopped collecting IEEPA tariffs on 24 February 2026 after the Supreme Court ruling.
Goods subject to Section 232 tariffs, such as steel and aluminium, are excluded from the 12.5% duty but pay their own Section 232 rates.
As of 4 November 2026, two more US Section 301 investigations involving Vietnam had no announced final action, and the Vietnam–US reciprocal trade agreement had not been signed, so rates may change again.

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Current US Tariffs on Vietnamese Goods (November 2026)

The US tariff on a product made in Vietnam now depends on three layers:

Normal US import duty (MFN rate): the general rate for the product's HTS code. Check it before anything else; our guide to checking Vietnam import tax rates explains how HTS codes work on the Vietnamese side.
Section 301 forced-labour tariff: an additional 12.5% on most Vietnam-origin goods, effective 12:01 a.m. US Eastern Time on 24 July 2026. The US Trade Representative (USTR) applied it to 60 economies following its Section 301 forced-labour investigations: 19 at 10% and 41, including Vietnam, at 12.5% (EY, 24 July 2026).
Section 232 tariffs: product-based tariffs on steel, aluminium, copper, lumber and automobiles. Products subject to Section 232 are excluded from the Section 301 duty.

For example, a Vietnamese product with a 5% MFN rate that is not exempt and not covered by Section 232 now pays about 5% + 12.5% = 17.5% of its customs value.

The Section 301 action also lists exempted products in its annexes, and goods in transit that were entered before 28 July 2026 were excepted. Before quoting a price to a US buyer, check the product's HTS code against the annexes and confirm whether Section 232 applies.

Container ship being loaded by cranes at a port — The US tariff on a Vietnamese product now depends on its MFN rate, the 12.5% Section 301 duty and any Section 232 tariff. Source: Andy Li / Unsplash.

How Vietnam's US Tariff Rate Changed Between April 2025 and July 2026

The additional US tariff on Vietnamese goods changed four times between April 2025 and July 2026:

April 2025: the US announced a 46% reciprocal tariff on Vietnam under the International Emergency Economic Powers Act (IEEPA), paused it and applied a 10% baseline tariff.
August 2025: the US applied a 20% reciprocal tariff on Vietnamese goods, with a 40% rate for goods found to be transshipped to evade duties. In October 2025, the two countries announced a framework for a reciprocal trade agreement.
February 2026: on 20 February, the US Supreme Court ruled that IEEPA does not authorise the president to impose tariffs. US Customs and Border Protection (CBP) stopped collecting IEEPA tariffs from 24 February, and a temporary 10% global tariff under Section 122 of the Trade Act took their place for a maximum of 150 days (Vietnam Briefing, 27 February 2026).
July 2026: the Section 122 tariff expired on 24 July and the Section 301 forced-labour tariff of 12.5% for Vietnam took effect the same day.

For most Vietnamese exporters, the additional US rate therefore went from none to 10% in April 2025, to 20% in August 2025, back to 10% in February 2026 and to 12.5% in July 2026.

What Happened to the 40% Transshipment Rate?

The 40% rate for transshipped goods was set in the same IEEPA executive order as the August 2025 reciprocal tariffs (Executive Order "Further Modifying the Reciprocal Tariff Rates", 31 July 2025). The Supreme Court ruling removed IEEPA as a basis for tariffs, and CBP stopped collecting IEEPA tariffs from 24 February 2026. Ask your customs broker to confirm how any transshipment penalty is treated for your specific entries.

Origin remains a real risk. US customs decides a product's country of origin by where it was substantially transformed, not by where it was last shipped from. Goods that are only relabelled, repacked or lightly assembled in Vietnam can be treated as originating in another country, and a wrongly declared origin can lead to back duties and penalties. Because the current Section 301 action stems from forced-labour investigations, expect US buyers to ask for supply-chain traceability.

Keep records that show where materials came from, which processing steps take place in Vietnam and who the suppliers are. Our guide to Vietnam customs penalties under Decree 169 covers the Vietnamese side of origin and declaration risks.

Section 301 Investigations Still Open

Two more US Section 301 investigations involve Vietnam and could lead to further tariffs:

Structural excess capacity: opened by USTR on 17 March 2026 into acts, policies and practices of 16 economies, including Vietnam, relating to structural excess capacity in manufacturing (Federal Register).
Intellectual property protection: a Vietnam-specific investigation initiated in late May 2026, after USTR named Vietnam a Priority Foreign Country in its 2026 Special 301 Report on 30 April 2026.

As of 4 November 2026, we found no announced final tariff action in either investigation. Businesses with large US sales should follow both, because a new Section 301 action can be added on top of existing duties.

Can US Importers Claim Refunds of IEEPA Tariffs?

CBP opened an IEEPA tariff refund process (CAPE) in phases from 20 April 2026. A phase for finally liquidated entries started on 6 October 2026 for importers with pending cases at the US Court of International Trade (Thompson Hine, September 2026). The government has appealed a court order that broadened refunds, so eligibility for some entries is still contested (Supply Chain Dive). The process covers IEEPA tariffs only, not the Section 122, Section 301 or Section 232 duties.

Only the importer of record can claim. If you sold on DDP terms, check whether your company or your US affiliate was the importer of record on the entries, and review them with your US customs broker.

Vietnam–US Reciprocal Trade Agreement: Where Things Stand

On 7 October 2026, Vietnam's Ministry of Industry and Trade said the two sides had held seven official negotiating rounds since April 2025 and had settled almost all contents of the reciprocal trade agreement (VietnamPlus). On 14 October, Vietnam said it had sent the final text to Washington, while US officials remained more cautious and pointed to the size of the US trade deficit with Vietnam (US News, 13 October 2026).

As of 4 November 2026, we found no announced signing date or final tariff level. A signed agreement could change the rate that applies to Vietnamese goods, so treat today's 12.5% as current rather than permanent.

What Exporters and Foreign Investors Should Do Now

Check your products' tariff position: confirm the HTS code, the MFN rate, whether Section 232 applies and whether the product is exempt under the Section 301 annexes.
Strengthen origin and supply-chain records: document material sources, processing steps and supplier details for each product line sold to the US.
Review contracts and Incoterms: clarify who pays new duties, how price adjustments work and who acts as importer of record.
Assess refund eligibility: if your group acted as US importer of record in 2025 or early 2026, ask your broker whether you can claim IEEPA refunds.
Model scenarios: price your US business at today's 12.5%, at a possible agreement rate and with additional Section 301 duties.
Diversify markets: use Vietnam's free trade agreements with the EU, CPTPP members and RCEP partners to reduce dependence on the US.

For investors deciding where to locate production, tariffs are only one factor. Our guides to starting manufacturing in Vietnam and Vietnam market entry requirements in 2026 cover licensing, structure and cost. If your Vietnamese operation also imports materials, check when you need an import licence in Vietnam.

Frequently Asked Questions

What is the US tariff on Vietnamese goods in 2026?

Since 24 July 2026, most Vietnam-origin goods pay the normal US MFN duty plus an additional 12.5% Section 301 tariff. Steel, aluminium, copper, lumber and automobile products follow separate Section 232 tariffs, and some products are exempt under the Section 301 annexes.

Is the 20% reciprocal tariff on Vietnam still in effect?

No. The 20% rate was imposed under IEEPA. After the US Supreme Court ruled on 20 February 2026 that IEEPA does not authorise tariffs, CBP stopped collecting IEEPA tariffs from 24 February 2026.

Does the 40% transshipment tariff still apply?

The 40% transshipment rate was set in the same IEEPA executive order as the reciprocal tariffs, and IEEPA tariffs stopped being collected in February 2026. Confirm the treatment of your entries with your customs broker. US customs still checks country of origin, so goods that are only repacked or relabelled in Vietnam can be treated as coming from another country.

Can tariffs paid in 2025 be refunded?

US importers of record can seek refunds of IEEPA tariffs through the CBP refund process, which opened in phases from April 2026. Eligibility for some entries is still being contested, so check with your US customs broker.

Will the Vietnam–US trade agreement change the rate?

Possibly. Vietnam says the final text has been sent to the US, but as of 4 November 2026 we found no announced signing date or tariff level. Open Section 301 investigations on excess capacity and intellectual property could also add duties.

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Plan Your US Exports With VINEX

US tariff rules for Vietnamese goods changed four times between April 2025 and July 2026. VINEX helps foreign-invested companies in Vietnam set up the right structure, manage customs and tax compliance and keep origin documentation in order, so pricing decisions rest on current rules.

Contact VINEX for a free consultation on your export and customs set-up.

This article is general information as of 4 November 2026, not legal or customs advice. Tariff rates can change at short notice; confirm the rate for your product with the official US notices or a licensed customs broker.