Garment sourcing from Vietnam still makes sense for many brands in late 2026, but the duty picture is different in every market. As of 9 November 2026, most Vietnamese apparel entering the United States pays its normal tariff rate plus an additional 12.5% under Section 301, while buyers in the EU, UK and CPTPP markets can often cut duty sharply if the garments meet the right rules of origin. This guide sets out what Vietnam tariffs mean for your landed cost, your paperwork and your timeline, market by market.
A quick note before we start: this is a factual summary for planning, not customs advice. Tariff treatment depends on the exact HS code, fabric content and origin of each style, so always confirm the final rate with your customs broker before you place an order.
Where do Vietnam tariffs on garments stand as of November 2026?
For US buyers, 2026 has brought three changes in a row. On 20 February 2026 the US Supreme Court ruled that the IEEPA tariffs, including the 20% reciprocal rate applied to Vietnamese goods, were not authorised, and that rate ended. A temporary 10% global duty under Section 122 of the Trade Act then applied from 24 February to 24 July 2026.
On 23 July 2026, USTR announced final action in its Section 301 forced labor investigations covering 60 economies. According to the Federal Register notice published 28 July 2026, products of Vietnam face an additional 12.5% duty, except items listed in the notice’s annexes, for goods entered on or after 12:01 a.m. Eastern time on 24 July 2026. The USTR press release lists the economies placed at 10%; Vietnam is not among them. The notice also sets up a textile tariff-rate quota that applies to Bangladesh, Cambodia, Indonesia and Malaysia, not Vietnam.
Two open items are worth tracking. First, a separate Section 301 investigation into Vietnam’s intellectual property practices has a determination deadline of 29 November 2026, as reported by The Star on 2 November 2026; whether it leads to further duties, and on which products, is not known. Second, Vietnam’s Ministry of Industry and Trade said in October that reciprocal trade agreement talks with the US were “essentially” complete on most content (Viet Nam News, 7 October 2026), but as of 9 November 2026 no agreement has been signed.
How does the 12.5% stack with normal US apparel duty?
The Section 301 rate is an additional duty. For Vietnam it is a flat 12.5%, not netted against the MFN rate (netting applies only to certain products of the EU, Japan, Korea, Switzerland and Taiwan). In practice, your broker will apply the normal column 1 rate for the HTS line of each garment, found in the US Harmonized Tariff Schedule, and then add 12.5% on top. Knit cotton polos, synthetic hoodies and cotton t-shirts all sit on different HTS lines with different base rates, which is why we never quote a single “apparel tariff” figure.
How do EVFTA, UKVFTA, CPTPP and RCEP change garment duty?
Outside the US, Vietnam’s free trade agreements can do a lot of the work for you, as long as the goods qualify. The table below summarises what buyers should know.
| Market | Agreement | What it means for garments | Origin point to check |
|---|---|---|---|
| United States | No FTA (reciprocal deal not signed as of 9 Nov 2026) | MFN duty plus additional 12.5% Section 301 on most Vietnamese goods | Substantial transformation in Vietnam; no transshipment |
| European Union | EVFTA, in force since 1 August 2020 | Duties on Vietnamese apparel phase down to zero on a schedule that began in 2020 | Textile product-specific rules in Annex II; Korean fabric cumulation allowed under conditions |
| United Kingdom | UKVFTA | Largely mirrors EVFTA preferences for UK imports | Rules of origin in the UK agreement; check the UK Trade Tariff per code |
| Canada, Japan, Australia, Mexico and others | CPTPP | Preferential or zero duty on many apparel lines | Generally “yarn forward”: yarn and fabric must come from CPTPP members, with limited exceptions |
| China, Japan, Korea, ASEAN, Australia, New Zealand | RCEP | Tariff reductions on schedules that vary by importing country | RCEP regional value or change-in-tariff rules |
| Switzerland, Norway, Iceland, Liechtenstein | Vietnam–EFTA FTA, signed 18 October 2026 | Not yet in force; no preference to claim today | Watch for ratification |
The EU agreement entered into force on 1 August 2020, according to the European Commission’s Access2Markets page on the EU-Vietnam FTA. When it was signed, Vietnamese officials said garment duties of up to around 15% would fall to zero within seven years (Vietnam Government News), which points to most lines reaching zero around 2027. Look up your exact code in TARIC before relying on it. UK buyers can do the same in the UK Trade Tariff and read the UK government’s summary of the UK-Vietnam agreement.
The Vietnam–EFTA agreement was signed in Hanoi on 18 October 2026 (Viet Nam News). It needs ratification before Swiss or Norwegian importers can claim any preference.
Why rules of origin decide whether you save on garment duty
This is where most first-time importers get caught. An FTA only lowers duty if the garment “originates” in Vietnam under that agreement’s rules, and for apparel those rules usually look back to the fabric or even the yarn.
- EVFTA and UKVFTA generally require the fabric to be woven or knitted in Vietnam (or in the EU or UK), not just cut and sewn there. Fabric from Korea can count under the EU’s cumulation rule if the conditions are met.
- CPTPP uses a stricter yarn-forward approach. Fabric imported from outside the CPTPP group typically disqualifies the garment, apart from items on a short supply list.
- US imports have no FTA, but origin still matters. Goods must be substantially transformed in Vietnam under 19 CFR Part 134. Simply relabelling or finishing garments made elsewhere does not make them Vietnamese.
That is why the fabric decision should be made with tariffs in mind. When you brief us, tell us which market the order is going to. Our partner sewing workshops can then source fabric that fits that agreement where possible, and we can tell you early if a particular fabric would mean paying the full rate.
What makes up the landed cost of garments from Vietnam?
Duty is only one line. A clear landed cost model helps you compare Vietnam with other sourcing options on equal terms.
| Cost element | What drives it | Who usually arranges it |
|---|---|---|
| Ex-works garment cost | Fabric, trims, print or embroidery, labour, private label items, order size | Supplier |
| Export packing and inland transport | Carton spec, polybags, hangtags, distance to port | Supplier (depends on Incoterm) |
| Export clearance and documents | Commercial invoice, packing list, certificate of origin | Supplier |
| International freight and insurance | Sea or air, volume, season, route | Buyer or supplier, per Incoterm |
| Import duty | HS code, fiber content, origin, FTA eligibility, Section 301 in the US | Buyer’s customs broker |
| Import taxes and fees | VAT or GST in most markets; processing fees in the US | Buyer’s customs broker |
| Last-mile delivery to warehouse | Port to warehouse distance, handling | Buyer |
Which Incoterms work best when tariffs are changing?
Most of our garment buyers choose FOB (the supplier delivers on board at a Vietnamese port) or EXW. Both keep import duty clearly on the buyer’s side, which is usually what you want when rates are moving, because your own broker files the entry and controls the classification. DDP looks simple, but it means the seller must act as or appoint the importer of record, and any duty change during transit becomes a pricing dispute. If you want DDP, agree in writing who carries the risk of a rate change.
Practical steps for buyers sourcing garments from Vietnam right now
- Classify every style before you price it. A polo in cotton piqué and a polo in a polyester sports fabric can fall under different HTS lines. Send your broker the fabric content and construction for each style.
- Decide the destination market first. The same garment may need different fabric sourcing to qualify for EVFTA versus CPTPP.
- Ask for complete export documents. We supply a commercial invoice, packing list and certificate of origin with every shipment, so your broker can claim any preference you are entitled to.
- Build a buffer into US pricing. With the IP-related Section 301 determination due by 29 November 2026, avoid locking retail prices so tightly that a further change would wipe out your margin.
- Keep origin evidence on file. Fabric invoices, cutting records and production photos make audits and origin checks far easier.
If you are planning a first collection, our guide on how to launch a private label clothing line walks through the product side: tech packs, samples and labels. For product options, see our custom garments hub, including custom polo shirts, custom t-shirts and custom hoodies and sweatshirts.
Frequently Asked Questions
What is the US tariff on clothing from Vietnam in November 2026?
As of 9 November 2026, most Vietnamese goods, including apparel not listed in the exclusion annexes, pay the normal HTS duty rate plus an additional 12.5% under Section 301, effective from 24 July 2026. The base rate depends on the exact HTS line. Your customs broker should confirm the total rate for each style.
Has Vietnam signed a reciprocal trade agreement with the US?
Not as of 9 November 2026. Vietnam’s Ministry of Industry and Trade said in October 2026 that most negotiating content had been completed, but no agreement has been signed or published. We will update buyers when official text is released.
Can I import garments from Vietnam into the EU duty-free?
Often yes, or at a reduced rate, under the EVFTA, provided the garments meet the agreement’s rules of origin, which generally require fabric made in Vietnam or the EU, with some cumulation options. You also need a valid certificate of origin. Check the code in TARIC and confirm with your broker.
Which documents do I need to import garments from Vietnam?
At minimum, a commercial invoice, a packing list, a bill of lading or air waybill, and a certificate of origin if you claim FTA preference. Your own market may also require labelling of fiber content and country of origin. We prepare the export side and share copies before shipment.
Should I choose FOB or DDP for apparel orders?
FOB is usually the cleaner choice while tariffs are changing, because duty and classification stay with your broker. DDP can work, but both sides must agree in writing how a duty change during production or transit is handled.
Plan your next garment order with clear costs
Tariffs are moving, but good planning keeps them manageable. Tell us your styles, fabrics, branding needs and destination market, and we will prepare a quote with the export documents your broker needs. Send your brief through our Request a Quote page and we will reply within one business day.