🇮🇳 India vs 🇻🇳 Vietnam Tariffs — Import Duty Comparison (2026)

When choosing between India and Vietnam as import sources, US businesses must weigh tariff rates, trade agreements, product availability, and supply chain logistics.

Both countries face the same base tariff rate of 10% on most goods entering the United States.

Both countries export Textiles, Machinery, Iron and steel to the United States, creating direct competition in these sectors.

In terms of trade volume, India accounts for approximately $130B in bilateral trade with the US, exceeding Vietnam's $127B.

Both countries are subject to the 10% Section 122 tariff imposed on February 24, 2026, following the Supreme Court's ruling striking down IEEPA tariffs. This rate expires approximately July 24, 2026 unless Congress extends it, and USTR has proposed 12.5% Section 301 duties on 46 countries — including China, Vietnam, India, Thailand, Japan, and South Korea — to replace it, with a July 20, 2026 completion deadline.

India's advantages include: Higher US trade volume ($130B vs $127B); Unique export categories: Pharmaceuticals, Diamonds, Petroleum products. Vietnam's advantages include: Unique export categories: Electronics, Footwear, Furniture.

With equivalent base tariff rates, the choice between India and Vietnam depends primarily on product-specific duties, shipping costs, lead times, and supply chain considerations rather than the base tariff rate.