Leaving China saves up to 25 points of duty. Choosing between Vietnam and India saves 2.5

A home good on Section 301 Lists 1 to 3 pays 37.5 points of additional US duty from China, 12.5 from Vietnam or Thailand and 10 from India or Malaysia, under the rates in force since Jul 24, 2026.¹ The big saving is leaving China. Among the alternatives, the gap is 2.5 points, small enough that one bad first order wipes it out.

That makes factory quality the deciding variable once you’ve left China. The tariff table is the easy part, and most of the risk sits in the plant you pick. All of the main alternatives except the Philippines and Sri Lanka also sit in an open USTR investigation that could change their rates.³

What tariffs does each country pay right now?

China pays the most, and nobody pays zero. The IEEPA “reciprocal” tariffs ended on Feb 24, 2026, after the Supreme Court ruling.⁷ The 10% Section 122 surcharge that replaced them expired on Jul 24.⁸ Since 12:01 am that day, country rates have come from Section 301 forced-labor tariffs on 60 economies.^1,2

Source: CBP CSMS #69326983 (Jul 23, 2026); White House memorandum (Jul 23, 2026); USTR, 91 FR 12886. Excludes MFN, AD/CVD and Section 232.^1,2,3

Section 232 goods follow their own rules. Steel, aluminum, copper and wood products covered by Section 232 are exempt from the forced-labor tariff and pay their 232 rate instead.¹ If you buy cookware, drinkware or furniture, read the 232 rules for your HTS line before comparing countries.

How big is the gap for my product?

Almost all of it depends on which original Section 301 list your HTS code falls on. Lists 1 to 3 carry 25%, and List 4A, which covers many consumer goods, carries 7.5%.⁹

Source: CBP CSMS #69326983; Great Lakes Customs Law on original list rates. MFN, freight and AD/CVD not included.^1,9

For a List 4A product, moving from China to Vietnam saves 7.5 points. A higher unit price or a first order that needs rework can eat that. A List 1 to 3 product has a 25-point gap, which usually survives those costs. Build the landed-cost comparison from real quotes before you decide.

Will the excess-capacity investigation close the gap?

Possibly, and nobody can say when. USTR opened Section 301 investigations on Mar 11, 2026 into “structural excess capacity” in China, the EU, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India.³ Hearings ran May 5 to 8.⁴ The initiation notice lists furniture among both China’s and Vietnam’s export sectors.³

The 7.5% figure in the news applies to China only. Bloomberg reported on Aug 24 that the US planned a 7.5% tariff on Chinese goods under this investigation, then on Sept 17 that the announcement would wait until after the Sept 24 summit.⁵ As of Oct 11, USTR has published no determination or rate for any of the 16 economies. Trade Representative Jamieson Greer told reporters on Oct 1 that results would come “within a few weeks.”⁶

The forced-labor tariffs are also in court. A three-judge panel at the Court of International Trade heard argument on Sept 30 and questioned whether USTR made adequate country-specific findings.¹⁰ If those tariffs fall, China’s gap with the alternatives widens again, since China would still carry its original Section 301 duty.

What can go wrong when I move to a new country?

The factory, more often than the tariff.

Origin is the first trap. Customs treats the country where a product is substantially transformed as its origin, so a Chinese-made product packed or lightly assembled in Vietnam can still be Chinese. Ask for the bill of materials and where each input is made.

Inputs carry their own exposure. DHS added 43 companies to the UFLPA Entity List on Aug 3, 2026, bringing it to 187, with cotton and aluminum among the priority sectors.¹¹ The ban follows the input, wherever final assembly happens.

Paperwork is checked earlier now. Since Jul 8, 2026, CPSC has required importers of regulated consumer products to eFile certificate data before entry.¹² A factory without real test reports becomes your problem at the port. And some AD/CVD orders cover more than one country: the countervailing duty order on thermoformed molded fiber products covers both China and Vietnam.¹³

How do I check a new factory before I move volume?

Run the same checks on every new supplier, cheapest first, so weak candidates drop out before you pay for samples.

Source: Standard Trade sourcing checklist, Oct 2026.

Keep your China supplier while the pilot runs. China+1 means a second confirmed source alongside the first.

Who can help me find and check a factory outside China?

Standard Trade matches importers to factories outside China that already make the same product and already ship to US brands. We confirm each one is a manufacturer and pull its US export history before you order. You keep your China supplier and add a checked backup.

Tell us what you need checked: info@standardtrade.ai.

Common questions

1. Is Vietnam cheaper than China for tariffs right now?

   For most home goods, yes. Chinese goods pay the original Section 301 tariff on top of the same 12.5% forced-labor tariff Vietnam pays.¹ The saving is 25 points for Lists 1 to 3 and 7.5 points for List 4A.

2. Is Vietnam covered by the excess-capacity investigation?

   Yes. Thailand, Malaysia, India, Indonesia, Cambodia, Bangladesh and Taiwan are covered too.³ As of Oct 11, 2026, no rate has been set for any country, and the 7.5% figure in the news was reported for Chinese goods.⁵

3. Can I ship Chinese goods through Vietnam to avoid tariffs?

   Not legally, if the goods aren’t substantially transformed in Vietnam. Origin follows where the product is made, whatever the port of loading. Misdeclaring origin is customs fraud, so talk to your broker before relying on any assembly step.

4. How do I verify a factory in Vietnam or India remotely?

   Check its registration and license, its US export records, a live video walk you schedule, and test reports in its own name. Then place a pilot order with independent inspection before you move real volume.