US Tariff on Clothing from Vietnam

Vietnam is the second-largest source of clothing imports to the United States and was the single biggest beneficiary of the SCOTUS ruling that struck down IEEPA tariffs in February 2026.

The current tariff structure for Vietnamese clothing is 26.5% total: 16.5% MFN base rate (HTS chapters 61-62) plus 10% Section 122. This is dramatically lower than the pre-ruling rate of approximately 62.5% (16.5% MFN + 46% IEEPA reciprocal), representing a cost reduction of over 36 percentage points.

Vietnam exports a wide range of garments to the US, including athletic apparel (for brands like Nike and Adidas), outerwear, T-shirts, pants, and intimate apparel. The country has invested heavily in textile manufacturing infrastructure and now has some of the most modern garment factories in Southeast Asia.

Compared to China (34% total), Vietnam offers an 7.5% advantage because Vietnamese goods are not subject to Section 301 tariffs. Bangladesh (26.5%) and India (26.5%) offer comparable rates, while Mexico at 0% (USMCA qualifying) remains the lowest-cost option from a tariff perspective.

The SCOTUS ruling fundamentally changed the competitiveness equation for Vietnamese apparel. Before February 2026, many importers were reconsidering Vietnam due to the punishing 46% IEEPA rate. Now, with rates normalized to 10% Section 122 across all non-China countries, Vietnam's advantages in manufacturing quality, capacity, and lead times make it highly competitive again.

Key risk: the Section 122 tariff expires approximately July 24, 2026. If Congress doesn't act, the total rate could drop to just 16.5% MFN. However, new Section 301 investigations launched March 11 could target Vietnam specifically.