Import taxes are not just an operating expense “to be calculated later” they directly impact the cost of goods, raising the selling price in the US and eating into profit margins if not properly accounted for. Many businesses focus solely on production and shipping costs, only asking “How much are the taxes?” after their goods arrive at US ports. By that point, it’s too late to adjust pricing or cost structures. Therefore, taxes should be incorporated into product pricing from the very beginning.
1. Overview of US Tariff Policies in 2025
If you follow international trade trends in recent years, you’ll notice that the US has continuously adjusted its tariff policies to balance trade and protect domestic manufacturing. 2025 is considered a “turning point,” with significant changes in how the US applies import tariffs, directly affecting exporting countries, including Vietnam.
According to Executive Order No. 14257 signed on April 2, 2025, the US officially implemented reciprocal tariffs on imports from approximately 180 economies, applying a base tariff rate of 10% on most imports from April 5, 2025. The goal is to reduce persistent trade deficits, protect economic security, and stimulate domestic production. This tariff is added on top of existing tariffs such as 25% on imported cars or 50% on steel and aluminum, as specified in other US trade laws. For Vietnam, initial announcements indicated a reciprocal tariff of 46% on imported goods. However, following negotiations, the tariff structure was revised.
From August 7, 2025, the new tariffs for Vietnamese exports to the US are as follows:
- 20% Tariff on certain Vietnamese exports: Many products will now face a 20% tariff, with detailed lists to be announced by the Office of the U.S. Trade Representative (USTR).
- 40% Tariff on transshipment goods: This applies to products identified as fraudulently transported or rerouted via third countries, where minimal processing occurs in Vietnam solely to label products as “Made in Vietnam” to evade tariffs.
- 0% Tariff on imports from the US: To rebalance trade, Vietnam will open its market to US products, allowing imports with zero tariffs.
3. How Is Import Tax from Vietnam to the US Calculated?
Import taxes from Vietnam to the US are composed of multiple small fees rather than a single fixed rate. When goods arrive at US ports or airports, the Customs and Border Protection (CBP) system calculates each component separately and then sums them up to determine the total payable duty.
- Customs Duty: Calculated as a percentage of the declared customs value, excluding shipping and insurance costs. The applicable rate depends on the product’s Harmonized System (HS) code.
- Merchandise Processing Fee (MPF): CBP applies a fee of 0.3464% of the declared value for most shipments.
- Harbor Maintenance Fee (HMF): For sea shipments, a fee of 0.125% of the shipment value is charged to fund port maintenance.
- Additional Tariffs or Penalties: Some products may be subject to anti-dumping duties or special tariffs based on US trade policies.
3. How to Reduce Import Tax from Vietnam to the US?
Most high import costs stem from misclassification, incorrect declarations, or failure to utilize legitimate legal mechanisms. Properly managing these aspects from the outset can significantly control the amount of tax payable.
3.1. Correct HS Code Classification
US import tariffs are determined by the Harmonized Tariff Schedule (HTS). An incorrect HS code can lead to large differences in duty rates. Even seemingly simple products can fall into different categories depending on materials, function, or packaging. Businesses should carefully review product specifications and directly compare them with the HTS codes published by the U.S. International Trade Commission (USITC).
3.2. Consolidate Multiple Shipments
Beyond the duty rate, each shipment incurs the Merchandise Processing Fee (MPF). Sending multiple small shipments separately results in multiple MPF charges. Instead, consolidating shipments into fewer entries or a single larger shipment can optimize administrative costs, reducing the total MPF paid. This doesn’t lower the duty rate but saves on handling fees.
3.3. Accurate Declaration of Customs Values
Avoid over-declaring to reduce taxes, which can trigger audits or penalties. Conversely, under-declaring risks delays, fines, or confiscation. Businesses should clearly identify what constitutes taxable value, ensure all trade documents, contracts, and invoices match, and maintain consistency to prevent suspicion or adjustments.
3.4. Prevent Mislabeling of Goods
In the context of US tightening origin controls, mislabeling products as “Made in Vietnam” when they are largely manufactured in China or other countries can lead to severe penalties. If found guilty of origin fraud, shipments face higher tariffs, fines, or even import bans.
3.5. Consider Special Tariff Programs or Duty-Free Benefits
US trade laws offer mechanisms like duty drawback, Temporary Importation under Bond, or preferential programs such as the Generalized System of Preferences (GSP). While Vietnam doesn’t benefit from free trade agreements with the US currently, some products qualify for duty exemptions if they meet certain criteria, particularly handmade or environmentally friendly products.
Frequently Asked Questions (FAQs)
1. Does the US offer duty exemption for low-value shipments?
Yes. Under the De Minimis rule (Section 321), shipments valued under USD 800 can be exempt from tariffs if they meet certain conditions.
2. Are products made in Vietnam but using Chinese raw materials subject to higher tariffs?
If the goods do not undergo substantial transformation in Vietnam, they may be considered as originating from China and could be subject to Section 301 tariffs.
3. Who is responsible for paying import duties?
The importer (usually the US buyer) is responsible for paying import taxes, not the Vietnamese supplier.
