🇲🇾 Malaysia vs 🇻🇳 Vietnam Tariffs — Import Duty Comparison (2026)

🇲🇾

Malaysia

Section 122 Rate10%

Section 301N/A

Section 232 (Metals)50%

Trade AgreementNone

Trade Volume$63B

Base Effective Rate10%

🇻🇳

Vietnam

Section 122 Rate10%

Section 301N/A

Section 232 (Metals)50%

Trade AgreementNone

Trade Volume$127B

Base Effective Rate10%

Product Overlap

Both countries export these product categories to the US:

ElectronicsMachinery

🇲🇾 Malaysia Advantages

+Unique export categories: Semiconductors, Palm oil, Rubber

🇻🇳 Vietnam Advantages

+Higher US trade volume ($127B vs $63B)
+Unique export categories: Textiles, Footwear, Furniture

When choosing between Malaysia 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 Electronics, Machinery to the United States, creating direct competition in these sectors.

In terms of trade volume, Malaysia accounts for approximately $63B in bilateral trade with the US, compared to 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.

Malaysia's advantages include: Unique export categories: Semiconductors, Palm oil, Rubber. Vietnam's advantages include: Higher US trade volume ($127B vs $63B); Unique export categories: Textiles, Footwear, Furniture.

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

Frequently Asked Questions

Which has lower tariffs — Malaysia or Vietnam?

Both countries face the same base Section 122 tariff of 10%. The difference comes from product-specific duties, Section 301 (China only), and Section 232 (metals).

Should I switch sourcing from Malaysia to Vietnam?

The decision depends on more than tariff rates. Consider total landed cost (shipping, insurance, customs fees), lead times, quality standards, minimum order quantities, and supply chain reliability. With equivalent base rates, focus on non-tariff factors.

Do both Malaysia and Vietnam face the same Section 122 tariff?

Yes, both countries are subject to the 10% Section 122 tariff imposed on February 24, 2026. This flat rate replaced the variable IEEPA tariffs struck down by the Supreme Court. It expires approximately July 24, 2026.

What products overlap between Malaysia and Vietnam exports to the US?

Both countries export Electronics, Machinery to the US. Malaysia has total bilateral trade of ~$63B while Vietnam has ~$127B.