July 7, 2025

Vietnam Trade Framework Will Bring Fresh Country of Origin Scrutiny

Author: Amy Morgan

Key takeaways

The proposed US-Vietnam trade framework sets a 20% tariff on Vietnamese exports and a 40% tariff on goods routed through Vietnam from another Country of Origin, such as China. Importers now need product-level visibility and traceability to prove Country of Origin and avoid the higher duty.

  • The proposed US-Vietnam trade framework sets a 20% tariff on Vietnamese exports to the US and a 40% tariff on goods shipped from Vietnam that originate in another country, such as China.
  • Vietnam is the second largest supplier of footwear, apparel, and accessories sold in the US market, and more than half of all US athletic shoe imports originate there.
  • Brands using Vietnam as a final assembly point for Chinese-made components may face 40% duties if they cannot prove that Vietnam is the Country of Origin.
  • Altana's Product Network gives importers shipping from Vietnam the product-level traceability and collaboration needed to prove Country of Origin and reduce liability under the proposed tariff framework.
Importers from Vietnam need visibility, traceability, and collaboration with their networks of suppliers and regulators to document and prove country of origin and minimize exposure to tariffs.
Last week, President Trump announced the proposed framework of a trade deal with Vietnam. Vietnam is the second largest supplier for footwear, apparel, and accessories sold in the US market, and more than half of all athletic shoe imports originate in Vietnam.
The White House hasn’t released details of the deal, but the president on Truth Social laid out the proposal.
  • 20% tariff on Vietnam exports to the US, and 40% for goods shipped from Vietnam from another Country of Origin, such as China.
  • This tariff replaces the 46% reciprocal tariff on Vietnamese goods announced April 2.
  • US exports to Vietnam will receive zero tariffs
The framework adds scrutiny for goods with ambiguous or Chinese-origin inputs that most brands wouldn’t have visibility into without access to a product network connecting them with suppliers, regulators and customers.
Brands relying on Vietnam as a final assembly point for Chinese-made components may face 40% duties if they can’t substantiate that Vietnam is the Country of Origin.
Akin to a product’s economic nationality, COO refers to where a good was produced, manufactured, or substantially transformed.
How AI and Collaboration Can Help Enterprises Manage Country of Origin Compliance
How AI and Collaboration Can Help Enterprises Manage Country of Origin Compliance
Strategies to minimize the impact of shifting tariff rates may need review. Brands should reassess supply chain traceability and evaluate exposure to duties in the new framework. Executives should stay alert for increased enforcement or verification, and ask themselves, “Are we confident in our COO declarations for goods routed through Vietnam? Do we know what portion of our SKUs would be subject to 40%?”

Product Network Reveals How Goods Are Manufactured, Sourced, Moved

Altana’s Product Network isn’t just another supply chain visibility tool; it’s the only dynamic, AI-powered map of the global supply chain built around products and how they actually move through the world.
Unlike static systems or siloed databases, the Product Network connects thousands of companies, logistics providers, and regulators through a continuously updating, shared view of global production and trade. It reveals how goods are sourced, manufactured, and moved—facility by facility, across borders, and through ownership networks.
For importers of products shipping from Vietnam, the Product Network provides the product-level traceability and collaboration needed to prove country of origin and reduce liability under the proposed tariff framework.
Powered by AI and enriched by real-world activity from its growing network of members, Altana transforms how companies operate across borders—replacing static, document-based systems with a living, connected network of trust, traceability, and proactive decision-making.

FAQs

  • The proposed framework sets a 20% tariff on Vietnamese exports to the US and a 40% tariff on goods shipped from Vietnam that originate in another country, such as China. US exports to Vietnam would receive zero tariffs. These rates replace the 46% reciprocal tariff on Vietnamese goods announced April 2.

  • Country of Origin is a good's economic nationality. It refers to where a product was produced, manufactured, or substantially transformed. Under the proposed Vietnam framework, Country of Origin determines whether goods face the 20% or 40% tariff.

  • The framework adds scrutiny for goods with ambiguous or Chinese-origin inputs by applying a 40% tariff to goods shipped from Vietnam that originate elsewhere. Brands that rely on Vietnam as a final assembly point for Chinese-made components may face that 40% duty if they cannot substantiate that Vietnam is the Country of Origin. Most brands lack visibility into these inputs without a product network connecting them to suppliers, regulators, and customers.

  • Importers need visibility, traceability, and collaboration with their networks of suppliers and regulators to document and prove Country of Origin. Altana's Product Network provides product-level traceability by revealing how goods are sourced, manufactured, and moved, facility by facility and across borders. This helps importers substantiate Country of Origin and reduce liability under the proposed tariff framework.

  • Brands should reassess supply chain traceability and evaluate their exposure to duties under the new framework. Executives should determine whether they are confident in their Country of Origin declarations for goods routed through Vietnam and what portion of their products would be subject to the 40% tariff. They should also stay alert for increased enforcement or verification.

Amy Morgan, Head of Trade Compliance at Altana

Amy Morgan •Head of Trade Compliance, Altana AI

Amy Morgan is the Head of Trade Compliance at Altana AI. Prior to Altana, Amy was Vice President, Cross-border at Avalara, responsible for developing technology solutions to automate landed cost calculation and cross-border tax compliance. She brings a wealth of practical trade compliance experience beyond technology, after managing global trade and customs compliance operations for Nordstrom, Costco Wholesale, and Amazon. In 2019, Amy was recognized as one of the Puget Sound Business Journal’s Innovators of the Year, using her “big trade” experience to eliminate cross-border complexity for all companies of sizes.