Reciprocal Tariffs 2025–2026:
What Every US Buyer Needs to Know
Section 301. IEEPA. Liberation Day. The tariff landscape shifted fast in 2025. Here's a plain-English breakdown of what's active, what applies to your supply chain, and what to do about it.
How We Got Here: The Tariff Timeline
From Section 301 in 2018 to Liberation Day 2025 — a chronological guide to every major tariff event affecting US manufacturers.
Section 301 Lists 1–3 enacted
USTR imposes 25% tariff on $250B of Chinese goods (machinery, metals, electronics)
List 4A added — 25% on $112B more
Expands to consumer goods, industrial equipment, auto parts
Phase One Trade Deal (limited)
Some tariff relief, but Section 301 Lists 1–4A remain largely intact
+10% IEEPA tariff on China
Additional 10% tariff on Chinese goods added under IEEPA authority
"Liberation Day" — Reciprocal Tariff Order
Executive order imposes country-specific reciprocal tariffs on most US trading partners, including a 46% rate on Vietnam-origin goods, 34% on China (stacked on top of existing Section 301)
90-Day Pause — Most countries (incl. Vietnam)
Reciprocal tariffs paused for countries not retaliating, reduced to 10% baseline for 90 days. China excluded from pause — rates escalated to 145%+ total.
Negotiations ongoing — Vietnam
Vietnam in active trade talks with the US. Outcome of reciprocal tariff rate for Vietnam-origin goods remains subject to negotiation. Section 301 ($0 for Vietnam) is separate and unchanged.
China tariffs remain elevated
Section 301 (up to 25%) + IEEPA stacking means China-origin manufactured goods face 100%+ effective tariff rates in many categories. Confirmed by USTR.
Tariff-by-Tariff Breakdown: China vs Vietnam
Three separate tariff authorities. Two very different outcomes for China vs Vietnam-origin goods.
| Tariff Type | Legal Authority | China Rate | Vietnam Rate | Status |
|---|---|---|---|---|
| Section 301 China-specific. Vietnam is not subject to Section 301. | Trade Act 1974 — USTR | Up to 25% (Lists 1–4A) | $0 — not applicable | Active |
| IEEPA (Feb 2025) Applied to China only as of Q1 2026. | IEEPA — Executive Order | +10% (stacked) | $0 — not applicable | Active |
| Reciprocal Tariff (Liberation Day) Vietnam in trade talks. Most-favored status under negotiation. Final rate TBD. | Executive Order — Apr 2025 | 34% additional (stacked → ~145%+ total) | 10% baseline during 90-day pause; subject to ongoing negotiation | Evolving |
| Standard MFN (WTO) Base rate for Vietnam before any additional tariffs. | US International Trade Commission | Applies (+ Section 301 on top) | 0–6% on most manufactured goods | Active |
Sources: USTR.gov, CBP.gov, Trade Act 1974, IEEPA authority, Federal Register Apr 2025. Rates as of Q2 2026. Always verify current rates with your licensed customs broker before making sourcing decisions.
The China Tariff Stack — Visualized
What a $500K China import actually costs US buyers in 2026 vs. the same parts from Vietnam.
Sourcing from China (2026)
Sourcing from Vietnam (Dewin)
Tariff rates change. This illustration uses estimated rates based on published data as of Q2 2026. The China example uses an estimated average Section 301 rate of 25%; actual rates vary by HTS chapter. Vietnam's reciprocal tariff outcome is subject to active negotiations. Always verify current rates with a licensed customs broker before making sourcing decisions.
Anti-Circumvention: The Rule You Can't Ignore
As tariffs escalate, so does CBP enforcement. Here's what "Made in Vietnam" actually requires — legally.
❌ What Doesn't Qualify
- ✗ Simple assembly of Chinese sub-components in Vietnam
- ✗ Relabeling or repackaging Chinese goods
- ✗ Minimal processing (painting, cutting, bending only)
- ✗ Chinese raw material + minor Vietnamese finishing
- ✗ Products where value-added in Vietnam is negligible
✓ What Qualifies (Substantial Transformation)
- ✓ CNC machining from Vietnamese raw material (billet, billet sourced locally or from non-Chinese suppliers)
- ✓ Die casting from alloy ingots poured in Vietnam
- ✓ Investment casting or forging from Vietnamese-origin billets
- ✓ Full manufacturing from sheet metal to finished fabrication in Vietnam
- ✓ Injection molding with Vietnamese or non-Chinese resin — finished molded part
How Dewin Protects You on Origin
Every factory in our 179+ network does genuine manufacturing in Vietnam. We audit on-site and document the manufacturing process, equipment, and material sourcing. Our factories issue proper Certificate of Origin documentation for each shipment.
We do not work with transshipment operations, relabeling facilities, or any factory that can't demonstrate genuine value-added manufacturing in Vietnam. Anti-circumvention compliance isn't just a legal issue — it's our reputation.
Your 6-Step Tariff Response Plan
Concrete actions for procurement teams navigating tariff uncertainty in 2025–2026.
Audit Your HTS Codes
Do this firstEvery tariff — Section 301, IEEPA, reciprocal — is applied by HTS code at the US port of entry. Know exactly which codes your parts fall under. This determines your actual tariff exposure.
Separate China Exposure from Vietnam
Immediate actionSection 301 (up to 25%) and IEEPA (+10%) are China-specific and are NOT applied to Vietnam-origin goods. If your supply chain is China-heavy, this is where your tariff pain lives.
Track Vietnam Reciprocal Rate Negotiations
Monitor weeklyVietnam's reciprocal tariff rate (46% announced, 10% during pause) is subject to ongoing US-Vietnam trade talks. Monitor USTR.gov and CBP.gov for updates. Dewin tracks this actively and updates clients.
Validate Country of Origin Documentation
Non-negotiableAnti-circumvention enforcement is increasing. Goods must undergo substantial transformation in Vietnam to claim Vietnamese origin. Ensure your factories have proper COO documentation and manufacturing records.
Calculate Total Landed Cost — Not Just Ex-Works
Before any decisionWith tariff stacking, the only number that matters is total landed cost at your US dock. Include: parts cost + ocean freight + customs duty + broker fees + tariffs. Run this comparison for every supplier.
Qualify Vietnam Factories Now — Before the Market Moves
Act earlyEvery manufacturer reading this is looking at Vietnam. Lead times at top audited factories are tightening. Qualifying now — with real on-site audits, not Alibaba listings — means you're first in line.
Why Vietnam Still Wins — Even With Tariff Uncertainty
Even with the reciprocal tariff negotiation in progress, Vietnam's structural advantages over China remain massive for US buyers.
Section 301 Gap Is Permanent
Section 301 is China-specific by statute. Even if Vietnam faces some reciprocal tariff rate, it will NEVER face Section 301. That gap — currently up to 25% — doesn't close regardless of reciprocal tariff outcomes.
Labor Cost Advantage — Structural
Vietnam manufacturing labor rates (~$2.50–4.00/hr) are 40–60% lower than comparable Chinese factories. This isn't tariff-dependent — it's a fundamental labor market difference.
US–Vietnam Relations: Strong Trajectory
Vietnam and the US upgraded to a Comprehensive Strategic Partnership in 2023. Trade relations are on a positive trajectory. Vietnam is actively negotiating favorable trade terms with Washington.
16+ Free Trade Agreements
Vietnam has 16+ active FTAs including CPTPP, EVFTA, RCEP, and bilateral agreements. For non-US buyers, Vietnam provides preferential access to markets China cannot.
Real Manufacturing — Not Transshipment
179+ Dewin-audited factories do genuine CNC machining, die casting, investment casting, and fabrication in Vietnam. Substantial transformation documented. Anti-circumvention compliant.
Transparent. Audited. Verified.
Every factory passes our 50-point Dolphin Audit. Equipment lists, photo galleries, inspection records — you see what you're getting before you order. No competitor shows you their factories like this.
Tariff FAQ — Straight Answers
What are reciprocal tariffs and how are they different from Section 301?
Section 301 tariffs (up to 25%) are China-specific penalties under the Trade Act of 1974, targeting intellectual property violations and unfair trade practices. Reciprocal tariffs (announced April 2, 2025) are country-specific tariffs applied to most US trading partners based on estimated trade imbalances. They are separate legal authorities with separate rates — and China faces both, stacked on top of each other.
Are Vietnam-origin goods subject to Section 301 tariffs?
No. Section 301 is China-specific. Vietnam-origin goods are NOT subject to Section 301. The standard US MFN tariff rate on most manufactured goods from Vietnam is 0–6%.
What is the current tariff rate on Vietnam-origin goods in 2026?
As of 2026, Vietnam's tariff situation is evolving. Section 301 does not apply. Standard MFN rates are 0–6%. The April 2025 reciprocal tariff announcement proposed 46%, but a 90-day pause reduced this to a 10% baseline for countries in negotiation. The final Vietnam reciprocal tariff rate is subject to ongoing US-Vietnam trade talks. Consult your customs broker for the most current rate on your specific HTS codes.
What is the effective total tariff on Chinese manufactured goods in 2026?
For most manufactured goods from China in 2026, the stacked effective tariff rate is substantial: standard MFN (varies) + Section 301 List 1–4A (up to 25%) + IEEPA (+10%) + Liberation Day reciprocal tariff (34%, not paused for China). Many HTS categories face 100%+ effective tariff rates. Confirm your specific HTS codes at USTR.gov and CBP.gov.
How does Dewin help buyers navigate tariff changes?
Dewin maintains a network of 179+ audited Vietnamese factories with proper COO documentation. We provide HTS code tariff analysis, landed cost comparisons, and factory qualification — all with on-ground verification. We also track tariff changes actively and update clients when relevant rate changes are confirmed.
Tariff regulations change frequently. This page is maintained for informational purposes only. Consult a licensed customs broker or trade attorney before making sourcing decisions.
Know Your Real Tariff Exposure. Act Now.
Run your parts list through our Tariff Impact Assessment. We'll show you your exact Section 301 exposure by HTS code and what switching to Vietnam production would actually save you.