US Probe Could Raise Tariffs on Vietnam Exports

U.S. officials announced a 12.5 percent Section 301 tariff on most Vietnamese imports, a move that follows an investigation into the country’s handling of forced‑labour prohibitions.

Tariff details and product exemptions

The Office of the United States Trade Representative (USTR) released the measures on 24 July 2026, adding the new duty after a temporary 10 percent global tariff expired. The notice lists specific products that are exempt under Annex I and Annex II, Part A. Those exemptions are meant to avoid disruption to U.S. supply chains, prevent broader economic impact, and address cases where alternative sourcing is limited.

Exempted items will be reflected in updates to the Harmonized Tariff Schedule of the United States (HTSUS). For exporters, the distinction means that each product must be examined individually to determine whether the tariff applies.

The notice clarifies that each of the 60 Section 301 investigations is legally separate. Tariffs on Vietnam operate independently of measures applied to other economies, and any successful legal challenge to one country’s tariff does not automatically affect Vietnam’s rates.

Vietnam’s inclusion follows a broader USTR assessment that many trading partners have not fully enforced prohibitions on forced‑labour‑linked imports. The agency argues that such gaps create an “unlevel playing field” for U.S. workers and businesses.

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While the determination does not accuse Vietnam of systematic forced labour, it points to gaps in the country’s regulatory framework for preventing imports made with forced labour from third‑party sources.

For many Vietnamese exporters, the new duty could raise the landed cost of their products, prompting a review of pricing, contracts, and supply‑chain strategies. Companies may need to adjust sourcing, production, or distribution plans to stay competitive in the U.S. market.

In practice, this means that a manufacturer of textiles in Ho Chi Minh City might have to re‑price its shipments or seek alternative markets if the added duty erodes profit margins.

Sector‑specific considerations

Companies with diversified supply chains may find the new framework more predictable, as the USTR’s approach combines country‑specific tariffs with targeted product exemptions rather than a blanket global rate.

Nevertheless, the added complexity requires ongoing monitoring of HTSUS updates and any revisions to the exemption lists. Firms that fail to track these changes risk unexpected cost increases.

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Compliance steps for Vietnamese exporters

USTR advises businesses to reassess supply‑chain traceability, supplier due diligence, and trade‑compliance processes. Key actions include verifying whether each exported product is covered by the exemption lists, confirming the correct HTSUS classification, and evaluating the impact of the duty on pricing and contract terms.

Legal experts note that the severability provision in the notice ensures that even if a court overturns a specific tariff or exemption, the remaining measures stay in effect unless separately challenged.

For additional guidance, firms can consult resources such as the USTR website or seek advisory services that specialize in supply‑chain and tariff analysis.

Businesses must adapt quickly.

Overall, the rate represents a shift toward more targeted U.S. trade enforcement, placing greater emphasis on product‑level compliance and country‑specific assessments.