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Vietnam

US Revised Tariffs (%)

20

Ease of doing business

theboardiQ Tariffs Dashboard:

Powering Mutually Beneficial Global Trade.

 

Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.

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Revised Tariff %
Original Tariff %
Country Tariff Rate %
Share of US Imports % (1 implies <1%)
20
46
1.1
4.2
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
13.1
136.56
-123.46

Implications

Here is an update on the US tariffs, trade deals, and the impact on Vietnam as of October 2025:

The US-Vietnam trade relationship is defined by a preliminary agreement on reciprocal tariffs, which has dramatically increased the cost of importing goods from Vietnam to the US.


US Tariffs Update - Vietnam


Area

Status (October 2025)

Key Details

Reciprocal US Tariff Rate

20% (Implemented)

This rate was announced in July 2025 as part of a preliminary trade deal, significantly lower than the initial 46% rate that was threatened.

Transshipment Tariff Rate

40% (Implemented)

A higher tariff rate applied to goods suspected of being rerouted (transshipped) through Vietnam to evade US tariffs imposed on other countries (primarily China).

Tariff Deal Status

Framework Agreement, Awaiting Finalization

The two nations reached a "loose framework" in July 2025. Technical negotiations are currently ongoing, with Vietnamese delegations visiting the US in October/November to finalize the terms of a comprehensive trade deal.

Vietnam's Commitment

Zero Tariffs on US Goods

The agreement-in-principle requires Vietnam to grant the US total, zero-tariff access to its market for American products.

New Wood/Furniture Tariffs

10% - 50% (Imminent/Implemented)

New Section 232 tariffs on wood, lumber, and furniture products have been announced, with initial rates taking effect on October 14, 2025, and scheduled to increase in January 2026. This particularly impacts one of Vietnam's largest export sectors.



Company and Industry Impact


The new tariffs have immediate and severe financial consequences for US companies that rely on Vietnamese manufacturing, as well as for Vietnamese exporters:

Sector

Impact

Companies/Products Affected

Footwear & Apparel

Hardest Hit. Exports saw an immediate drop after the 20% tariff took effect. Vietnam is the world's second-largest footwear supplier.

Global brands like Nike, Adidas, and Puma produce a large portion of their goods through Vietnamese suppliers.

Furniture & Wood Products

Increased Pressure. The new Section 232 tariffs (up to 50% by 2026) directly target a major Vietnamese export category, compounding the 20% reciprocal tariff.

Manufacturers of upholstered furniture, kitchen cabinets, and wood/lumber products are facing massive price hikes.

Electronics & Manufacturing

Investment Uncertainty. Companies are delaying investment and restructuring due to the 20% base tariff and the 40% transshipment risk.

Companies like Intel have reportedly postponed planned investments and scaled back staff. Other large manufacturers like Samsung and LG are also affected.

Transshipment Risk

Major Threat. The 40% tariff is an attempt to close the loophole of Chinese companies re-exporting goods through Vietnam to avoid China tariffs.

Any company using Vietnam as a manufacturing base that sources a high percentage of raw materials or components from China faces the risk of the 40% duty.


Overall Impact:

  • The UN estimated that Vietnam's total exports to the US could risk losing $25 billion due to the new tariffs.


  • A survey by PwC Vietnam indicated that 86% of foreign-direct investment (FDI) companies in Vietnam were concerned about the tariffs, with 44% already exploring moving production out of the country.

US Revised Tariffs

Country Tariffs

Balance of Trade

Commercial Guide

Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals

Tariff Rate for US

World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.

US Imports Guide 

United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.

Investing in USA

theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters

Sources : ForbesUSDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia International Trade Administration

theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.

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