Vietnam: The Highest Non-China IEEPA Rate
Vietnam received the highest IEEPA reciprocal tariff rate of any country outside China at 46%, taking effect April 5, 2025. The formula used to set this rate reflected Vietnam’s large and rapidly growing trade surplus with the United States, which had been driven by massive manufacturing expansion as companies diversified production away from China.
For U.S. importers, the 46% rate meant that every dollar of Vietnamese imports during the IEEPA period generated $0.46 in IEEPA duties — with all of that now potentially refundable through CAPE.
Why Vietnam Matters for U.S. Importers
Over the decade before 2025, Vietnam became one of America’s most important manufacturing partners. Major global brands shifted significant production capacity to Vietnam, building out factories, supply chains, and logistics networks. Categories that moved heavily to Vietnam include:
- Apparel and footwear: Major U.S. and global brands have large Vietnamese production bases
- Electronics: Consumer electronics assembly, component manufacturing
- Furniture: Bedroom sets, seating, outdoor furniture
- Rubber products: Industrial and consumer rubber goods
- Agricultural processing: Coffee, seafood, processed food
The shift to Vietnam was explicitly a response to China’s rising costs and trade tensions. The 46% IEEPA rate made Vietnam, ironically, the country with the highest per-dollar duty burden of any of the major diversification destinations.
Key Product Categories
Apparel (Chapters 61–62): Ready-made garments are Vietnam’s largest export category to the U.S. The 46% IEEPA rate on Vietnamese apparel was a severe shock to brands and retailers that had built their supply chains around Vietnamese production.
Footwear (Chapter 64): Vietnam is the second-largest source of U.S. footwear imports after China. Athletic footwear, casual footwear, and work boots from Vietnamese factories bore the full 46% rate.
Electronics and Components (Chapters 84–85): Consumer electronics assembly has expanded significantly in Vietnam. Samsung, Intel, and many other manufacturers have Vietnamese facilities.
Furniture (Chapter 94): Wooden furniture, bedroom sets, and upholstered pieces from Vietnam.
No FTA Complications
Unlike Canada, Mexico, and South Korea, Vietnam does not have a free trade agreement with the United States. There are no FTA exemptions to navigate. All Vietnamese goods that were entered for consumption between April 5, 2025 and February 20, 2026 with IEEPA duties assessed are straightforwardly eligible for CAPE refunds.
This makes Vietnamese-origin claims simpler to prepare than entries from FTA partner countries.
Estimating Your Vietnam Refund
For a business that imported $1 million in goods from Vietnam during the April 2025–February 2026 IEEPA window:
- Estimated duty refund: $460,000 (46% of import value)
- Estimated interest (5%): $23,000
- Estimated total: $483,000
Use the calculator above to estimate your specific situation. The actual refund is based on per-entry 7501 data, but this estimate gives you a strong directional sense of the opportunity.