China+1 Strategy

Manufacturing Regions:
Choose Where to Source

Section 301 tariffs changed the sourcing calculus. Vietnam, India, Mexico, and Thailand are all in play — but not all regions are equal. Here's an honest comparison so you can pick the right one for your program.

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Section 301 Tariffs Are Still Active — Up to 145% on China-Origin Goods

All four regions below — Vietnam, India, Mexico, Thailand — are exempt from Section 301 (a China-specific authority under the Trade Act of 1974). Shifting production out of China to any of these regions eliminates your Section 301 exposure. The question is which region fits your process, volume, and lead time requirements.

Explore Each Manufacturing Region

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Vietnam

Dewin's Primary Hub — Best-in-Class China+1

$0 Section 301
179+ audited factories

Tariff Status

$0 Section 301

FTA Coverage

16+ FTAs (CPTPP, EVFTA, RCEP, UKVFTA)

Labor Cost (avg)

~$3–5/hr avg

US Transit Time

18–25 days sea freight

Tariff Note: Vietnam is NOT subject to Section 301 (China-specific). $0 additional tariff on top of standard MFN rates.

⚙️ Process Strengths

  • CNC machining (turning, milling, 5-axis)
  • Aluminum & zinc die casting
  • Sheet metal fabrication & stamping
  • Injection molding & plastic parts
  • Forging (hot, cold, ring rolling)
  • Investment casting
  • Fasteners & hardware
  • Furniture & wood products
  • Electronics assembly (consumer, industrial)
  • Agricultural & industrial equipment parts

Best For

Mid-to-high volume precision parts, castings, fabricated metal assemblies, cost-sensitive programs where tariff elimination is a priority

⚠️ Watch Out For

Semiconductor FAB, defense ITAR-controlled components (case-by-case)

Estimated Savings vs China+Tariff

Est. 30–50% landed cost savings vs China+Section 301 tariff

🎯 Dewin's Coverage

Full on-ground team — auditors, QC engineers, photographers

Audit System: 50-point Dolphin Audit

Browse 179+ Audited Vietnam Factories →

Tariff Comparison by Region

All figures reflect current US import tariff structure. Section 301 is China-specific and does not apply to Vietnam, India, Mexico, or Thailand.

Region Section 301 Sec. 232 Steel Sec. 232 Aluminum Avg MFN Rate Note
🇻🇳 Vietnam $0 N/A (not subject) N/A (not subject) ~3–5% Best tariff profile for US buyers
🇮🇳 India $0 25% (GSP suspended) 10% ~3–7% Watch Ch.73 (steel articles)
🇲🇽 Mexico $0 0% (USMCA quota) / 25% 0% (USMCA quota) / 10% 0% (USMCA) Requires USMCA rules of origin
🇹🇭 Thailand $0 N/A N/A ~3–6% No US-Thailand FTA
🇨🇳 China 25–145% 25% (+ Section 301) 10% (+ Section 301) ~3–7% + S301 ⚠️ Highest cost — tariff stacking risk

* Tariff rates are for reference only. Verify with a licensed customs broker for your specific HTS codes. Vietnam reciprocal tariff under negotiation as of Q2 2026.

Process Availability by Region

Not every region covers every process at production scale. Here's where each region excels — and where Dewin has verified supplier coverage.

Process 🇻🇳 Vietnam 🇮🇳 India 🇲🇽 Mexico 🇹🇭 Thailand
CNC Machining
Die Casting (Al/Zn) limited
Injection Molding
Sheet Metal / Stamping
Forging limited limited
Investment Casting limited limited
Welding & Fabrication
3D Printing (FDM/SLA)
Electronics Assembly
Powder Metallurgy / MIM limited limited limited
Aluminum Extrusion limited
Rubber / Silicone Parts

Vietnam coverage reflects Dewin's 179+ audited factory network. India, Mexico, Thailand reflect Dewin partner-network capabilities.

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Why Vietnam is the Default Right Answer

For most US manufacturers sourcing precision parts, castings, fabricated metal, or plastic components from China, Vietnam ticks every box:

$0 Section 301

The only tariff that matters. Eliminates 25–145% tariff stack on identical Chinese goods. Day-one savings, no FTA paperwork required.

179+ Audited Factories

Dewin has physically visited, photographed (1,700+ photos), and 50-point Dolphin-audited every supplier. No other region in our network has this depth.

On-Ground QC Team

Our auditors and quality engineers are in Vietnam, not just connected remotely. Real inspections, real photos, pre-shipment sign-offs before your goods leave the factory.

India, Mexico, and Thailand are genuine alternatives for specific use cases — but if your primary driver is China tariff elimination with quality assurance, Vietnam is where we can give you the most confidence.

How Dewin Manages Multi-Region Sourcing

01

Region Match

We map your BOM to the right region(s) based on process, volume, tariff exposure, and lead time requirements.

02

Factory Selection

Our network spans Vietnam (audited), plus partner networks in India, Mexico, and Thailand for cross-region programs.

03

On-Ground QC

Vietnam: Dewin team physically on-site. Other regions: 3rd-party lab partners. Consistent reporting format regardless of region.

04

Single Touchpoint

You deal with one Dewin contact. We manage the multi-region complexity, shipping, COO documentation, and customs on your behalf.

Frequently Asked Questions

Which manufacturing region has the best tariff profile for US buyers?
Vietnam, India, Mexico, and Thailand are all exempt from Section 301 tariffs (China-specific). For most precision manufacturing categories, Vietnam offers the best overall profile: $0 Section 301, 16+ FTAs for global distribution, and Dewin's 179+ audited factory network with on-ground QC coverage.
Is Vietnam better than Mexico for manufacturing?
It depends on your program. Mexico offers nearshore speed (2–5 day truck transit) and USMCA compliance advantages for automotive Tier 1/2 and JIT supply models. Vietnam has lower labor cost, broader process depth for precision parts and castings, and Dewin's deepest factory coverage. For most metal parts and components, Vietnam delivers a better landed cost. For JIT automotive, Mexico may win.
Can Dewin source from India or Mexico as well as Vietnam?
Yes. Dewin manages Vietnam sourcing with our own on-ground QC team and 179+ audited factory network. For India, Mexico, and Thailand, we work through vetted partner networks. Vietnam is where we have the deepest coverage — but for multi-region or region-specific programs, we can manage all four.
What about the Vietnam reciprocal tariff that was discussed in 2025–2026?
As of Q2 2026, the US-Vietnam reciprocal tariff framework remains under negotiation. A 90-day pause has been in effect. Vietnam's structural advantages — $0 Section 301, 16+ FTAs, and genuine manufacturing ecosystem — remain intact regardless of final reciprocal tariff negotiations. We recommend verifying current status with a customs broker for your specific HTS codes.
How do I decide which region is right for my parts?
Start with process fit (does the region have depth in your process?), then tariff profile (Vietnam and India have the broadest exemptions), then logistics (Mexico wins on transit speed), then QC coverage (Vietnam is where Dewin has the most depth). Use our Tariff Impact Assessment tool or book a call with our sourcing team to get a region recommendation for your specific BOM.

Not Sure Which Region Fits Your Program?

Tell us your process, volume, and current supplier country — we'll map you to the right region and match you with audited factories.