US Imposes New Trade Tariffs on Vietnam Over Forced Labor Concerns

The US administration under President Donald Trump has announced new trade tariffs on Vietnam and nearly 60 other trading partners, citing insufficient enforcement of bans on goods produced by forced labor. The new tariff rate of 12.5% will be applied to Vietnam starting at 00:01 ET on July 25. US Trade Representative Jamieson Greer stated that the US has prohibited imports of goods made with forced labor for nearly a century and it is time for trading partners to seriously implement similar regulations. The new tariffs are being imposed under Section 301 of the Trade Act of 1974, with the rationale that many partners have not fully enforced import bans on goods produced by forced labor. The new tariff rates will cover 99.4% of imports into the US, with exemptions for many items including oil and gas, fertilizers, certain food products, and items already subject to tariffs under Section 232 for national security reasons, such as automobiles, steel, aluminum, and copper. Goods meeting the requirements of the US-Mexico-Canada Agreement (USMCA) will also be exempt. Goods from Argentina, Bangladesh, the UK, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, and Trinidad and Tobago will face a 10% tariff. The European Union, Taiwan, Japan, South Korea, and Switzerland will have tariffs adjusted so that their total tariff rates, including existing most-favored-nation tariffs, are at 10% or 12.5%. Vietnam was among the over 60 trading partners investigated by the USTR, which launched an investigation under Section 301 on March 11, 2026, regarding their failure to issue or fully enforce import bans on goods produced by forced labor. On July 24, 2026, the USTR published its final conclusion, identifying Vietnam as one of 54 economies that "have not effectively issued and enforced import bans on goods produced by forced labor." In response, Vietnamese Foreign Ministry spokesperson Pham Thu Hang stated on June 4, 2026, that the US investigation's conclusion "does not accurately reflect the reality and Vietnam's efforts to prevent and mitigate forced labor," affirming that Vietnam always adheres to international labor standards. In addition to the forced labor probe, the US is conducting two other trade investigations into Vietnam in 2026: one concerning intellectual property rights (launched May 29, 2026) and another on overcapacity in production (launched March 11, 2026). Regarding intellectual property, the USTR had previously designated Vietnam as a "priority foreign country" in its Special 301 Report in April 2026, the highest level of monitoring for IP violations. During a meeting on the sidelines of the 59th ASEAN Foreign Ministers' Meeting (AMM-59) in the Philippines on July 23, Vietnamese Deputy Foreign Minister Le Hoai Trung met with US Secretary of State Marco Rubio. According to the Vietnamese Ministry of Foreign Affairs, Mr. Le Hoai Trung "requested the US side to conclude the Section 301 investigation soon" and "fully acknowledge Vietnam's efforts on intellectual property issues." He also highlighted Vietnam's commitment to improving its investment and business environment through legal reforms. Despite Hanoi's objections, the US administration proceeded with imposing the new tariff on Vietnam over forced labor concerns. This development highlights potential friction between Vietnam's state-led economic growth model and international labor and human rights standards, especially as it navigates its complex relationship with China and the US.