Although, Vietnam became the biggest garment exporter to the US in 2025, the country may face new challenges as the US Trade Representative (USTR) proposes an additional 12.5% tariff on goods from Vietnam.
Notably, some direct competitors, such as Bangladesh, are proposed lower tariffs, raising concerns about the potential for order relocation in the near future.
The USTR issued a preliminary conclusion in its investigation and proposed additional tariffs on goods imported from 60 countries deemed to lack adequate legal mechanisms to prevent the production of goods using forced labour.
“While Vietnam is subject to a 12.5% tariff, Bangladesh one of its biggest direct competitors in the global garment industry, is subject to a 10% tariff,” Investing.com reported.
According to Mirae Asset Vietnam Securities (MASVN), the 2.5% difference, while not significant, could affect the order allocation decisions of US buyers, especially given that global brands are increasingly sensitive to costs.
The US is the most important export market for Vietnam’s textile and garment industry, contributing about 40% of the industry’s total export turnover, equivalent to approximately $18 billion in 2025.
Image courtesy: Advance Denim
