Vietnam Apparel Import Tariffs in 2026: Current Rates and What Changed
The United States Trade Representative took final action on July 23, 2026, imposing a permanent 12.5% Section 301 duty on goods from Vietnam. It takes effect at 12:01 a.m. eastern on July 24, the same minute the temporary Section 122 surcharge expires. There is no gap between them.
For apparel buyers, the headline rate is only half the story. The final action also delivered a textile mechanism that gives four competing apparel sourcing countries reduced-rate access that Vietnam did not receive. This guide covers what changed, what it costs by garment category, where Vietnam now stands against its alternatives, and what remains stable in every market outside the United States.
Where things stand
A 12.5% Section 301 duty applies to Vietnamese goods entered for consumption on or after 12:01 a.m. eastern on July 24, 2026, under dockets USTR-2026-0265 and USTR-2026-0266. It carries no expiration date and no statutory rate cap. It sits on top of standard MFN apparel duties of 0 to 32% by product type. Outside the United States, nothing has changed: the UAE CEPA is active, VIFTA with Israel is in force, and preferential access continues through EVFTA, UKVFTA, CPTPP, VKFTA, and VSFTA.
Vietnam Apparel Tariffs by Market
The chart below maps tariff rates for Vietnamese apparel across major destination markets. Hover over any bar for the rate and its basis. The United States figure is the Section 301 duty now in force, which applies in addition to standard apparel duties.
Vietnam Apparel Import Tariffs, July 2026
What Changed on July 24
The sequence that brought this about ran across five months and three legal mechanisms. What matters commercially is where it landed, and the landing is more permanent than anything that preceded it.
Section 122 expired
The temporary surcharge reached its 150-day statutory limit and ended at 12:01 a.m. eastern on July 24. Only Congress could have extended it, and no legislation was introduced.
Section 301 replaced it the same minute
USTR timed the final action to close the gap exactly. Importers moved from a temporary surcharge to a permanent duty without a single day of relief in between.
Vietnam is at 12.5%
The action covers 60 economies representing 99.4% of U.S. imports, split into a 10% tier and a 12.5% tier. Vietnam is in the higher tier alongside China, Brazil, and Russia.
The finding is about enforcement, not production
The determination concerns whether an economy prohibits and enforces against the importation of goods made with forced labor from third countries, a question of regulatory enforcement rather than a judgment on conditions inside Vietnamese factories.
No cap and no sunset
Section 122 carried a statutory ceiling and a fixed clock. Section 301 carries neither. The 12.5% remains until USTR affirmatively changes it.
Standard duties still apply
MFN apparel duties of 0 to 32%, depending on product and HTS code, apply beneath the Section 301 duty. Anti-dumping and countervailing duties are unaffected.
Exemptions exist, though not for apparel
Two annexes exempt goods under Section 232 programs, USMCA duty-free goods from Canada and Mexico, CAFTA-DR textiles, most Chapter 98 entries, donations, and informational materials. Vietnamese apparel falls under none of them.
Section 122 refunds remain open
The Court of International Trade ruled in May that the administration exceeded its Section 122 authority, with relief limited to three named plaintiffs and the ruling stayed on appeal. Duties collected during the 150 days are still tied to that proceeding.
The in-transit window has closed
Goods loaded before 12:01 a.m. eastern on July 24 were exempt from the additional duty provided they were entered for consumption or withdrawn from warehouse before 12:01 a.m. eastern on July 28. That window has now passed, and every Vietnamese apparel entry from this point carries the duty. What remains actionable is verifying your specific HTS codes against the two exemption annexes with a licensed broker, and confirming whether any of your Section 122 entries from the 150-day period fall within the ongoing Court of International Trade proceeding.
A temporary surcharge became a permanent duty without a single day between them, a structural change rather than a cycle that reverses on its own.
What U.S. apparel duties look like by product
The 0 to 32% MFN range cited throughout this guide is wide enough to mislead without examples. The rate a buyer pays depends on fiber content, garment construction, and whether the product is knit or woven, with synthetic fibers consistently carrying higher base rates than cotton or wool. The table below shows representative MFN base rates alongside the total now payable with the Section 301 duty applied.
| Garment Category | Fiber | HTS Ref. | MFN Base | Total with 301 |
|---|---|---|---|---|
| T-shirts (knit) | Cotton | 6109.10 | 16.5% | 29.0% |
| T-shirts (knit) | Synthetic | 6109.90 | 32.0% | 44.5% |
| Sweaters, pullovers (knit) | Cotton | 6110.20 | 16.5% | 29.0% |
| Sweaters, pullovers (knit) | Synthetic | 6110.30 | 32.0% | 44.5% |
| Men's suits, blazers (woven) | Wool | 6203.11 | 17.5% | 30.0% |
| Men's shirts (woven) | Cotton | 6205.20 | 19.7% | 32.2% |
| Women's blouses (woven) | Cotton | 6206.20 | 15.4% | 27.9% |
| Trousers (woven) | Cotton | 6203.42 | 16.6% | 29.1% |
| Trousers (woven) | Synthetic | 6203.43 | 27.9% | 40.4% |
| Overcoats, jackets (woven) | Wool | 6202.11 | 17.5% | 30.0% |
| Dresses (woven) | Synthetic | 6204.43 | 16.0% | 28.5% |
| Activewear, performance (knit) | Synthetic | 6114.30 | 14.9% | 27.4% |
These are representative rates, not formal classifications
Actual duty rates depend on the specific 10-digit HTS code assigned to each garment, determined by fiber content, construction method, and other classification details. The rates above use the most commonly cited MFN rates for each category and illustrate the range rather than replace formal tariff classification. The annexes to the final notice exempt specific product codes, so individual lines should be verified. Buyers should work with a licensed customs broker for binding determinations on their specific products.
The Textile Mechanism, and Why Vietnam Sits Outside It
The provision most relevant to apparel buyers received the least coverage. Alongside the two duty tiers, the final action includes a textile mechanism allowing a defined volume of apparel and textile imports to enter at a reduced Section 301 rate, with the qualifying volume tied to the partner country's purchases of U.S.-produced cotton and man-made fiber textile inputs.
Four economies were named in that mechanism: Bangladesh, Cambodia, Indonesia, and Malaysia. Vietnam is not among them. Thirteen economies also received their own additional product exemption lists, and a further tranche of 1,737 textile and apparel codes covers Jordan outright, along with El Salvador and Guatemala where goods enter free of duty under CAFTA-DR.
Three of the four economies in the textile mechanism also sit in the lower 10% duty tier. So for apparel specifically, the gap between Vietnam and those four sourcing countries widened in two ways at once: a 2.5 point difference in the base duty, and volume-based relief on top of it.
Where the gap opened
Bangladesh, Cambodia, Indonesia, and Malaysia now carry both a lower rate and reduced-rate volume access. That advantage concentrates in commodity basics, where duty is a large share of landed cost and unit price drives the decision.
Where it did not
China, Brazil, and Russia are all at 12.5% with no textile mechanism. Against the countries that compete with Vietnam on technical capability rather than on price, the relative position is unchanged.
That distinction is worth holding onto, with one qualification. Most of the countries that gained ground are the ones brands already use for high-volume basics, and the countries that compete with Vietnam on tailored construction, technical outerwear, membrane-bonded fabrication, and performance categories landed exactly where Vietnam did. India is the exception. It moved to the lower tier without textile mechanism access, and it competes with Vietnam in woven shirting and suiting rather than only on price, which makes it a narrower but real consideration for buyers in those categories.
Separately, USTR opened a Section 301 investigation into intellectual property protection and enforcement in Vietnam in late May, and designated Vietnam a Priority Foreign Country, the most severe designation available under the Special 301 framework. No action has been proposed in that proceeding, though it is worth monitoring for brands with design protection exposure. Our guide to protecting fashion IP in manufacturing covers the practical side of that question.
Tariff Rates in Other Key Markets
Outside the United States, Vietnam's trade agreements continue to provide stable, preferential access. For brands shipping to Europe, Japan, the Middle East, Australia, and other agreement markets, none of the U.S. policy activity described above applies, and the tariff picture remains far more predictable.
European Union
0 to 12% via EVFTA, with many tariff lines progressively reduced under the agreement. The EU remains one of the most stable and preferential markets for Vietnamese apparel.
United Kingdom
Preferential rates under the UK-Vietnam free trade agreement (UKVFTA), with 85.6% of tariff lines eliminated immediately and scaling to 99.2% by 2027.
UAE and the Middle East
The Vietnam-UAE CEPA entered into force on February 3, 2026, eliminating tariffs on 95%+ of Vietnamese goods immediately. This is Vietnam's first FTA with an Arab country and positions the UAE as a gateway to the broader GCC, Middle East, and North Africa markets.
Israel
0% on most apparel via VIFTA (in force since 2024). Suits, blazers, dresses, outerwear, and synthetic garments are exempt immediately. Cotton basics including T-shirts, cotton shirts, and cotton trousers are phasing from 6% to 0% over five years, currently around 3 to 4% in 2026. Vietnam's first FTA with a West Asian country.
Japan
0 to 10% via CPTPP, well suited to premium apparel and one of the most established preferential trade relationships in Vietnam's FTA network.
Mexico
0 to 10% via CPTPP for qualifying goods. Relevant for brands and retailers shipping to both the U.S. and Mexico from the same Vietnam production program, since the two markets now carry very different tariff profiles.
Canada
0 to 10% via CPTPP for qualifying goods. Canada is a significant apparel import market and shares CPTPP membership with Vietnam, providing stable preferential access for Canadian-bound production programs.
Australia
Preferential access through both AANZFTA and CPTPP, giving Australian buyers two overlapping trade agreement pathways for Vietnamese apparel imports. Australia is an established and growing destination for Vietnam-produced apparel.
South Korea
Preferential rates via VKFTA, one of the most commercially significant bilateral trade agreements in Vietnam's FTA network. South Korea is a major apparel market with strong demand for both premium and performance categories, and Korean brands have been among the most active buyers in Vietnam's manufacturing sector.
Singapore
0% via VSFTA. Singapore functions as both a direct market and a regional trade hub for Southeast Asia, making it a relevant destination for brands distributing across the ASEAN region from Vietnam production.
For brands selling into multiple regions, this divergence is now the central planning variable. A single Vietnam production program can serve the EU, UK, Japan, South Korea, the UAE, Israel, Singapore, Mexico, Canada, and Australia at preferential rates while the U.S.-bound portion of the same program carries a permanent additional duty. Allocating volume by destination has become a live commercial question rather than a theoretical one.
What This Means for Your Sourcing Strategy
The honest read is that Vietnam's U.S. cost position weakened relative to several competing apparel sourcing countries, and held steady against the rest. Whether that matters to a given program depends almost entirely on what the program produces.
For high-volume commodity basics, where duty is a large share of landed cost and buyers select on unit price, 2.5 points plus reduced-rate volume access is a real advantage for Bangladesh, Cambodia, Indonesia, and Malaysia. India carries the lower rate without textile mechanism access, which makes it a narrower advantage concentrated in woven categories. Brands sourcing that way should expect to be asked why they are still in Vietnam.
For tailored construction, technical outerwear, membrane-bonded and seam-sealed products, structured suiting, and performance categories, the calculation is different. Those programs depend on capability that is concentrated in a small number of countries, and Vietnam's closest peers in that group landed at the same 12.5%. Moving a wool coat program or a Gore-Tex membrane program to a country with a lower duty means little if the facilities there cannot build the product to the same standard.
Which points at the broader discipline. A sourcing decision made on a duty rate that has now moved three times in six months was never a sourcing decision. Between February and July, U.S.-bound Vietnamese apparel carried a reciprocal tariff, then a temporary surcharge, then a permanent Section 301 duty. Factory capability, quality consistency, compliance standing, and the ability to repeat production on schedule are the variables that survive that kind of volatility, which is why we treat tariffs as one input among several rather than as the deciding factor.
Practical steps from here: verify your specific HTS codes against the exemption annexes with a licensed broker, rebuild landed cost models on the 12.5% figure rather than on any earlier assumption, review destination allocation if you ship to both U.S. and agreement markets from the same program, and confirm with your broker whether entries made during the Section 122 period are affected by the pending litigation.
Evaluating Vietnam Production by Category
For buyers reassessing where their production belongs, these guides cover what buyers need to know across our main production categories.
Formal wear and structured garments
Blazers, suits, tailored trousers, and structured outerwear for retailers, private label brands, and hospitality programs.
Waterproof and Gore-Tex outerwear
Waterproof jackets, technical shells, and insulated outerwear, covering waterproof ratings, layer construction, seam taping, and certified production.
Hospitality uniform programs
Hotel groups, resort operators, and food service organizations producing scaled uniform programs across multiple properties.
Medical and healthcare apparel
Hospital systems, clinic networks, and healthcare organizations sourcing scrubs, lab coats, and clinical uniforms at institutional scale.
Performance and technical apparel
Activewear, technical outerwear, and performance uniform programs requiring specific fabric certifications and construction standards.
Custom uniform manufacturing
Healthcare, hospitality, retail, facilities, and corporate organizations building scaled uniform programs in Vietnam.
Responsible and sustainable sourcing
Environmental certifications, eco-friendly fabric options, and EU compliance standards for buyers with responsible sourcing requirements.
Denim and casual bottoms
Specialty retailers, department stores, and wholesale buyers sourcing denim and casual bottoms programs with real construction and wash detail, at any volume.
Children's apparel at institutional scale
School districts, retail chains, hospitality groups, and wholesale buyers sourcing children's apparel with the safety compliance and size grading institutional programs require.
Dresses and blouses
Department stores, specialty retailers, hospitality groups, and wholesale buyers sourcing dresses and blouses where fabric drape, lining, and fit across the size range define quality.
Repeat production programs
Uniform programs, private label retail, and institutional buyers managing ongoing production relationships where consistency across every reorder is the primary measure of success.
Costing and FOB pricing
What a quote contains, which factors move the number, and how to rebuild a landed cost model when the duty assumption underneath it changes.
How Pham Fashion House Helps
Pham Fashion House is a New York based apparel sourcing and production partner with operations in Vietnam. We help brands, retailers, and sourcing managers plan production with current trade conditions in mind, modeling costs across markets and aligning production timelines with the realities of an evolving tariff environment.
We are not a customs broker or a trade compliance advisor, and we recommend working with one for formal tariff determinations and for entry timing decisions. What we provide is practical sourcing and production support: matching your program to the right factory, managing sampling and quality oversight, and coordinating production and export documentation through our Vietnam manufacturing network.
For more context on Vietnam production, our China vs Vietnam manufacturing comparison and our guide to switching garment production to Vietnam both cover how to think through sourcing decisions in the current environment. Buyers earlier in their factory evaluation process may also find our guide to choosing an apparel manufacturing partner in Vietnam a useful starting point.
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