Tariffs, costs & compliance compared — so you can make the right sourcing call.
| Factor | 🇻🇳 Vietnam | 🇹🇼 Taiwan |
|---|---|---|
| US Trade Rank | #7 | #8 |
| Annual US Imports | $137B | $109B |
| Trade Agreement | No FTA | No FTA |
| Avg Duty Rate | 12.7% average (apparel/footwear heavy) | 1.4% average MFN |
| Section 301 Surcharge | ✓ None | ✓ None |
| Section 232 (Steel/Alum) | ⚠ 25% steel, 10% aluminum Sectio | ⚠ 25% steel, 10% aluminum Sectio |
| Compliance Complexity | ● Medium Complexity | ● Low Complexity |
| Ocean Transit to US | 18–35 days (ocean) | 12–20 days (ocean) |
Trade Agreement: No FTA (IPEF — not in force)
MFN Status: MFN/WTO Member
Transit to US: 18–35 days (ocean) · 5–9 days (air)
Main Ports: Ho Chi Minh City, Haiphong, Danang
Growing capacity. Some congestion at HCMC. Trans-shipment via Singapore common for LCL.
Anti-circumvention investigations ongoing. Vietnam-origin goods must demonstrate substantial transformation, not merely assembly from Chinese inputs.
Full Vietnam Profile →Trade Agreement: No formal FTA
MFN Status: MFN/WTO Member
Transit to US: 12–20 days (ocean) · 3–5 days (air)
Main Ports: Kaohsiung, Keelung (Taipei)
Strong direct service. Classified separately from China for customs — no Section 301.
Semiconductors and electronics generally duty-free under ITA. Key risk is accurate classification — components vs. finished goods.
Full Taiwan Profile →Based on $50,000 FOB product value. Duty rate reflects typical electronics treatment. Freight is estimated ocean FCL. Actual costs vary by HTS code, Incoterms, carrier, and shipment size.
| Cost Component | 🇻🇳 Vietnam | 🇹🇼 Taiwan |
|---|---|---|
| FOB Product Value | $50,000 | $50,000 |
| Customs Duties (5% MFN) | $2,500 | $2,500 |
| Est. Ocean Freight | $4,000 | $4,000 |
| MPF + HMF (US Fees) | $236 | $236 |
| Total Estimated Landed Cost | $56,736 | $56,736 |
Cost differences become more pronounced for products with higher duty exposure. Run your specific product HTS code to see real savings.
Your HTS code, shipment size, and Incoterms make a big difference. Get a precise cost breakdown for Vietnam vs Taiwan in under 60 seconds.
Transshipment risk — CBP scrutinizes goods routed through Vietnam to avoid China Section 301 duties. Country of origin rules strictly enforced.
TSMC and semiconductor imports often duty-free under ITA. No political recognition complications for customs purposes.
Accurate country-of-origin marking (19 CFR Part 134), proper HTS classification, CBP entry filing, and applicable agency certifications (FDA, USDA, EPA, CPSC depending on product). Work with a licensed customs broker to confirm requirements for your specific goods.
The right sourcing decision depends on your product category, HTS classification, shipment volume, and tolerance for compliance complexity. Here's the key decision logic:
Overall landed cost depends on your specific product, HTS classification, shipment size, and freight costs. Vietnam has an average duty rate of 12.7% average (apparel/footwear heavy) vs Taiwan's 1.4% average MFN. Run your product through the calculator for precise numbers.
Neither Vietnam nor Taiwan currently has a comprehensive free trade agreement with the US. Both are subject to MFN duty rates — Vietnam at 12.7% average (apparel/footwear heavy) and Taiwan at 1.4% average MFN on average.
Vietnam is NOT subject to Section 301 tariffs. Taiwan is NOT subject to Section 301 tariffs. For steel and aluminum: Vietnam faces Section 232 steel/aluminum duties: 25% steel, 10% aluminum Section 232 duties apply. Taiwan faces Section 232 steel/aluminum duties: 25% steel, 10% aluminum Section 232 duties apply.
For electronics, both Vietnam and Taiwan are generally subject to standard MFN rates. Most electronics (HTS Chapter 84, 85) carry 0% MFN duties under the Information Technology Agreement. The real differentiators are compliance complexity (Medium for Vietnam vs Low for Taiwan), logistics lead times, and supplier quality.
Vietnam: Transshipment risk — CBP scrutinizes goods routed through Vietnam to avoid China Section 301 duties. Country of origin rules strictly enforced. Taiwan: TSMC and semiconductor imports often duty-free under ITA. No political recognition complications for customs purposes. Both origins require accurate country-of-origin marking (19 CFR Part 134) and proper HTS classification. Consult a licensed customs broker for origin-specific requirements.
Tariff comparisons sourced from USITC HTS Schedule and USTR Section 301 lists as of 2026-04-07. Sample landed cost figures are illustrative estimates only — actual costs depend on HTS classification, Incoterms, carrier rates, and current trade policy. Section 301 product lists, trade agreement rules of origin, and duty rates change frequently. Verify all rates with a licensed customs broker before making sourcing decisions. AI-assisted analysis — not legal or customs advice.