Tiếng Việt
中文 (中国)
日本語
On 24 July 2026 (Vietnam time), the Office of the United States Trade Representative (USTR) released its Final Determination in the investigation conducted under Section 301 of the Trade Act of 1974 covering 60 economies concerning the failure to enact or effectively enforce measures prohibiting the importation of goods produced wholly or in part with forced labor.
According to the Final Determination, the USTR decided to maintain the two additional tariff rates of 10% and 12.5%, as previously proposed in the Preliminary Determination. In addition, the USTR introduced an offset mechanism in relation to Most-Favored-Nation (MFN) tariff rates for certain trading partners to adjust the application of the additional duties.
Tariff Measures Effective from 24 July 2026
According to the USTR announcement, the Section 301 tariff measures officially took effect on 24 July 2026 (U.S. Eastern Time). The Final Determination also provides for transitional arrangements and certain exemption mechanisms for shipments that satisfy the conditions prescribed under U.S. law.
Significant Expansion of the List of Exempted Products
Alongside the Final Determination, the USTR published a list of products exempt from the Section 301 tariff measures. Compared with the earlier proposed list, the scope of exemptions has been significantly expanded to reduce potential adverse impacts on U.S. manufacturing, supply chains, and the broader economy.
The exempted products primarily include essential raw materials and production inputs facing domestic supply shortages; products for which additional tariffs could disrupt supply chains or have widespread adverse effects on the U.S. economy; goods that are not produced in the United States or are produced in insufficient quantities to meet domestic demand; certain products for which additional tariffs would not effectively advance the policy objectives; and products exempted pursuant to commitments between the United States and certain trading partners.
With respect to Vietnam, the United States continues to classify Vietnam among the 38 countries and territories subject to the 12.5% additional tariff, applicable to approximately 37% of Vietnam’s exports to the U.S. market, after excluding products that qualify for exemptions under U.S. law.
Vietnam Continues to Strengthen Its Legal Framework on the Prohibition of Forced Labor
In parallel with the existing provisions of the Constitution and labor legislation prohibiting all forms of forced labor, on 22 July 2026, the Government of Vietnam issued Decree No. 292/2026/ND-CP, detailing the implementation of certain provisions of the Law on Foreign Trade Management.
Notably, the Decree introduces a prohibition on the importation of products and goods extracted, produced, or manufactured wholly or in part through forced labor. This is regarded as an important step in strengthening Vietnam’s legal framework, contributing to the full implementation of the conventions of the International Labour Organization (ILO) and other relevant international commitments, while enhancing supply chain transparency and promoting sustainable development.
Continued Engagement with the United States on Legal Developments
Looking ahead, the Ministry of Industry and Trade stated that it will continue coordinating with relevant ministries and agencies to engage with the United States regarding the implementation of commitments and the progress made in strengthening Vietnam’s legal framework on the prohibition of imports of goods produced through forced labor.
At the same time, the Ministry will continue working with the USTR and other competent U.S. authorities to ensure that Vietnam’s legislative and enforcement efforts are fully reflected, with the objective of promoting the application of import tariff measures that appropriately take into account Vietnam’s specific circumstances and practical conditions.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnam Antidumping Law Firm specializing in anti-dumping and trade remedy for timely assistance.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
