Sourcing from Vietnam vs China: Full Tariff Comparison 2026
If your supply chain runs through China, you are paying 17.5% to 35%+ in additional duties above the MFN base rate — Section 301 alone adds 7.5%–25%, and Section 122 adds another 10%. Vietnam has neither. This guide breaks down the duty differential by product category, walks through a full landed cost comparison, and covers the origin rules you need to understand before switching suppliers.
Duty rate comparison by product category
The table below shows the effective 2026 duty rate for goods from China versus Vietnam across the most commonly sourced product categories. The "saving" column is the percentage point advantage of sourcing from Vietnam versus China.
Rates as of July 2026. Section 122 (10%) scheduled to expire ~July 24, 2026 — applies to both China and Vietnam currently. Verify before filing.
Worked example: furniture container, China vs Vietnam
Consider a 40' container of upholstered sofas (HTS 9401.61.40) with a customs value of $80,000, arriving at Port of Miami. Here is how the duty stack compares:
$20,000 per container saved on duty alone by sourcing from Vietnam instead of China on this product — 25% of customs value, before any unit price difference is factored in.
What Vietnam is strong in — and where China still wins
The tariff advantage from Vietnam is only worth something if you can actually source the product there at competitive quality and lead times. Here is an honest assessment:
Vietnam is now the #1 US furniture import source by value. Strong labor force, established factories, good quality.
Major brands shifted production post-2018. Lead times comparable to China for large orders.
Samsung, Intel, LG have major Vietnam operations. PCB assembly and consumer electronics are well-established.
Strong leather goods and soft goods manufacturing. Good for mid-range brands.
Semiconductors, advanced PCBs, optical equipment — supply chain depth and tooling investment makes China hard to replace.
Processing capacity and raw material integration remain China advantages. Section 232 + 301 stacking hurts, but alternatives are thin.
For some categories, China's FOB price advantage still exceeds the Section 301 duty cost, especially pre-tariff contracts.
For rapid iteration, custom tooling, and SKU proliferation, China's supplier ecosystem has no equal yet.
Origin rules: how CBP determines where your goods are "from"
Country of origin for duty purposes is determined by where substantial transformation occurred — not where the shipment originated. This is the most important concept when evaluating a Vietnam sourcing shift, because CBP actively investigates circumvention.
The manufacturing process must result in a new and different article with a distinct name, character, and use. A simple change in form or appearance — re-boxing, final assembly, re-labeling — does not constitute substantial transformation.
For textiles and apparel, origin follows the "yarn forward" or "fabric forward" rules — where the yarn or fabric was made, not where the final assembly occurred. This means apparel sewn in Vietnam from Chinese fabric may still be considered Chinese-origin.
CBP may look at the percentage of value added in the claimed origin country. There is no universal threshold, but significant value addition (50%+) generally supports origin in the manufacturing country.
CBP actively investigates companies that appear to be transshipping Chinese goods through Vietnam. If found to be circumventing Section 301 or ADD/CVD orders, companies face retroactive duty assessments, penalties, and seizure.
Before switching: Work with a licensed customs broker to review your proposed Vietnam manufacturing process against CBP's origin criteria. Get a binding ruling from CBP if the origin determination is not clear-cut. A binding ruling provides certainty and protection against retroactive duty assessments.
Enter any HTS code and compare your effective duty rate from China, Vietnam, Mexico, and other major sourcing countries side by side — with FTA eligibility and Section 301 exposure flagged automatically.