The Tariff Savings Playbook
for US Manufacturers
A practical guide to calculating your Section 301 exposure, identifying which parts to move first, and capturing est. 30–50% landed cost savings by sourcing from Vietnam.
⚠️ Vietnam is NOT subject to Section 301 tariffs. Vietnam-origin goods enter the US at standard MFN rates — typically 0–5% for most manufactured goods.
The Tariff Math — It's Worse Than You Think
Most procurement teams underestimate their Section 301 exposure. Here's what the numbers actually look like at scale.
Annual Tariff Cost Examples — China vs Vietnam
| Annual Import Value | China @ 25% Section 301 | Vietnam @ 0% Section 301 | Est. Annual Savings |
|---|---|---|---|
| $100,000 | $25,000 | ~$0–$2,000 | ~$23,000–$25,000 |
| $250,000 | $62,500 | ~$0–$5,000 | ~$57,000–$62,000 |
| $500,000 | $125,000 | ~$0–$10,000 | ~$115,000–$125,000 |
| $1,000,000 | $250,000 | ~$0–$20,000 | ~$230,000–$250,000 |
| $2,000,000 | $500,000 | ~$0–$40,000 | ~$460,000–$500,000 |
* Estimates based on 25% Section 301 List 3 rate. Actual savings depend on MFN duty rates for specific HTS codes. Does not include factory price differentials or freight differences. For a project-specific analysis, use the Cost Calculator or request a free quote.
Estimate Your Section 301 Savings
Enter your current annual import spend from China and your Section 301 tariff rate to see your savings opportunity.
Est. figures based on tariff elimination only. Actual results will vary based on factory pricing, freight, and MFN duty rates. Use as directional estimate only.
Section 301 Rate by HTS Category
Reference guide for common industrial manufacturing HTS chapters. Vietnam-origin goods are not subject to any of these rates.
| HTS Chapter | Description | Section 301 List | China Rate | Vietnam Rate | Common Parts |
|---|---|---|---|---|---|
| Ch. 73 | Iron/Steel Articles (fasteners, fittings, structures) | List 3 | 25% | $0 | Screws, bolts, brackets, frames |
| Ch. 76 | Aluminum Articles | List 3 | 25% | $0 | Extrusions, castings, machined aluminum |
| Ch. 84 | Machinery & Mechanical Appliances | List 3 | 25% | $0 | Pumps, valves, compressors, gears |
| Ch. 85 | Electrical Machinery & Equipment | List 3 / 4A | 25% | $0 | Motors, switches, connectors, PCBs |
| Ch. 87 | Vehicles & Auto Parts | List 2 / 3 | 25–27.5% | $0 | Body panels, brackets, assemblies |
| Ch. 39 | Plastics & Articles Thereof | List 3 | 25% | $0 | Injection molded parts, housings |
| Ch. 72 | Iron & Steel (billets, coils, plate) | List 3 | 25% | $0 | Sheet, strip, plate, coil |
| Ch. 90 | Optical, Medical, Precision Instruments | List 3 / 4A | 25% | $0 | Housings, brackets, precision parts |
| Ch. 94 | Furniture & Parts | List 4A | 25% | $0 | Metal frames, components, assemblies |
| Ch. 82 | Tools & Cutlery (hand tools) | List 3 | 25% | $0 | Wrenches, clamps, tooling fixtures |
* Rates shown are Section 301 tariffs imposed under the Trade Act of 1974 (USTR), effective as of March 2026. Standard MFN duties apply additionally. Always confirm classifications with a licensed customs broker or the CBP CROSS ruling database.
The 6-Step Tariff Savings Playbook
This is the exact process our clients follow to move from China tariff exposure to Vietnam cost savings — typically in 3–6 months.
Map Your BOM to HTS Codes
Pull your bill of materials and assign each line item its 10-digit HTS code. Focus first on the highest-spend items.
Identify Section 301 Exposure
Cross-reference each HTS code against the Section 301 Lists 1–4A. Most industrial parts fall on List 3 at 25%. Some categories hit 145%.
Calculate Annual Tariff Cost
Multiply: Annual import value (CIF) × tariff rate = annual Section 301 cost. This is your savings opportunity.
Match Parts to Vietnam Factories
For each tariff-exposed line item, identify if a Vietnamese factory can produce it. Most machined, cast, stamped, and molded parts can be Vietnam-sourced.
Run Cost Comparison
Get Vietnam factory pricing and calculate landed cost including freight. Compare to your current China landed cost + tariffs.
Transition & Lock In Savings
Start with your highest-tariff parts. Request samples, qualify the Vietnam factory, then shift volume. Typical transition: 3–6 months.
Why Vietnam Is the Optimal Tariff Escape Route
Not all alternatives are equal. Vietnam stands out for US manufacturers for a specific combination of reasons.
$0 Section 301 Tariff
Vietnam is not included in any Section 301 action. Goods manufactured in Vietnam enter the US under standard MFN rates — typically 0–5% for industrial goods.
16+ Free Trade Agreements
Vietnam has 16+ active FTAs covering the EU (EVFTA), Asia-Pacific (CPTPP), ASEAN, and more. This gives your Vietnam supply chain preferential access to multiple global markets.
179+ Audited Factories
Dewin's network of 179+ pre-audited Vietnamese factories means you can move fast. Each factory has a verified 50-point Dolphin audit score, equipment list, and real photo documentation.
Est. 30–50% Lower Landed Cost
When you combine tariff elimination + Vietnam factory pricing, the total landed cost reduction vs China+Section 301 is typically 30–50%. The tariff savings alone can pay for a factory audit within weeks.
Tariff Savings FAQ
Ready to Stop Paying Section 301 Tariffs?
Share your BOM or top tariff-exposed part numbers. We'll match them to pre-audited Vietnamese factories and run a free landed cost comparison.
179+ audited Vietnam factories · 50-point Dolphin audit · Est. 30–50% landed cost savings