Vietnam Responds to New US Tariffs, Cites Efforts Against Forced Labor

Vietnam's Ministry of Foreign Affairs has countered the United States' imposition of a new 12.5% tariff on imports from Vietnam under Section 301, asserting that the measure does not fully reflect Vietnam's efforts to prevent and mitigate forced labor. "Vietnam strictly prohibits all forms of forced labor and diligently adheres to the regulations of the International Labour Organization (ILO), international conventions, and free trade agreements to which Vietnam is a member," stated Foreign Ministry Spokesperson Pham Thu Hang on July 25, when asked to comment on the US decision. She added that the decision by the US Trade Representative (USTR) does not fully capture the reality and Vietnam's endeavors in preventing, reducing, and eliminating forced labor, including the prohibition of importing products made with forced labor. On July 22, the Vietnamese government issued Decree No. 292/2026/ND-CP, which stipulates the prohibition of importing goods that are wholly or partially exploited, produced, or manufactured through forced labor, according to the spokesperson. "The decision by the US Trade Representative (USTR) does not fully reflect the reality and Vietnam's efforts in preventing, reducing, and eliminating forced labor, including the prohibition of importing products that use forced labor," Ms. Hang said. Vietnam will continue to engage in constructive dialogue and cooperation with the US, requesting that the US fully assess the measures Vietnam has implemented to adjust the tariff rate in line with reality, as well as Vietnam's legislative and enforcement efforts. The USTR had previously announced that the US would begin imposing new import tariffs on all goods from economies "under investigation" starting at midnight on July 24, with some exceptions. Thirty-eight countries, including Vietnam, are subject to a 12.5% tariff. A 10% tariff is applied to goods imported from countries such as Argentina, Bangladesh, the UK, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, and Mexico. For the European Union (EU), Taiwan, Japan, South Korea, and Switzerland, the new tariff, when added to the current Most Favored Nation (MFN) rate, will total 10% or 12.5%, depending on the economy. The US proposed this tariff in early June, following an investigation under Section 301 of the Trade Act of 1974 concerning the policies of its trading partners in preventing the circulation of products made with forced labor. The USTR argued that this practice disadvantages the US in terms of competition.