On July 24, 2026 (Vietnam time), the Office of the US Trade Representative (USTR) issued its Final Determination in the investigation conducted under Section 301 of the Trade Act of 1974 covering 60 economies regarding their failure to adopt or effectively enforce measures prohibiting the importation of goods produced wholly or in part with forced labor.  

Under the Final Determination, USTR maintained the two additional tariff rates of 10% and 12.5% as set out in the Preliminary Determination, while introducing a mechanism to offset these additional duties against the Most-Favored-Nation (MFN) tariff rates applicable to certain trading partners.

Effective date of the measure

The Section 301 tariff measures took effect on July 24, 2026 (US Eastern Time). USTR also established transitional arrangements and exemptions for goods meeting specific eligibility requirements under the applicable regulations.

Products exempted from the additional tariffs

Alongside the Final Determination, USTR released a list of products exempted from the Section 301 tariff measures. Compared with the Preliminary Determination, the scope of exemptions has been significantly expanded to mitigate potential adverse impacts on the US economy and its supply chains.

The principal categories of exempted products include essential raw materials and production inputs facing potential domestic supply shortages; products whose additional tariffs could disrupt supply chains or have economy-wide impacts in the US; products not manufactured in the US  or produced in quantities insufficient to meet domestic demand; products for which the imposition of tariffs would not effectively advance the stated policy objectives; and certain products exempted pursuant to commitments between the US and specific trading partners.

Vietnam is among the 38 countries and territories subject to the additional 12.5% tariff, which applies to approximately 37% of Vietnam's current exports to the US after products excluded under US law are removed from the scope of the measure.

Strengthening the legal framework governing imports associated with forced labor

In addition to the Constitution and existing labor legislation that strictly prohibit all forms of forced labor, on July 22, 2026, the Government of Vietnam promulgated Decree No.292/2026/ND-CP detailing a number of provisions of, and measures for implementing, the Law on Foreign Trade Management. The Decree introduces a prohibition on the importation of products and goods that are extracted, produced, or manufactured wholly or in part through forced labor. The issuance of the Decree underscores the Vietnamese Government's commitment to strengthening the domestic legal framework, fully implementing the conventions of the International Labour Organization (ILO) and other international commitments, and enhancing transparency and sustainability across supply chains.

Going forward, the Ministry of Industry and Trade will continue coordinating with relevant ministries and agencies to engage with the US on the implementation of bilateral commitments and Vietnam's progress in strengthening its legal framework governing the prohibition of imports produced with forced labor. The Ministry will also continue working with USTR and other relevant US authorities to ensure that Vietnam's efforts to strengthen and effectively enforce its legal framework are fully reflected, thereby facilitating the application of import tariff measures that accurately reflect Vietnam's actual circumstances.