Tariffs, Trade & Textiles: Must Know About Importing Garments From Vietnam in 2025

In 2025, global garment sourcing is no longer just a numbers game. It’s a strategic decision shaped by tariffs, free trade agreements, rules of origin, and shifting trade policies. For the fashion importers, understanding how these elements affect apparel imports is key to maintaining profitability and supply chain agility in such volatile times. 

Whether you’re importing fashion collections, uniforms, or bulk basics, this expert guide unpacks the current tariff landscape, trade agreements, and compliance risks that garment buyers must navigate this year.

Quick Glossary: Tariff & Trade Terms for Apparel Importers

Before we dive in, here are some key terms every garment buyers and importers should be familiar with:

• HS Code (Harmonised System Code): A universal product classification system. Apparel often falls under Chapters 61 (knitwear) and 62 (woven).
• MFN (Most Favoured Nation): Standard tariff rates granted by WTO member countries.
  These typically range from 8–20% for garments, depending on the item and material.
• FTA (Free Trade Agreement): Deals that eliminate or reduce import duties between countries.
• Rules of Origin: Criteria that determine whether a garment qualifies for FTA benefits.
  They define how much of the product’s value must originate from within the FTA member countries. For example, under EVFTA (Europe – Vietnam FTA), the fabric must be woven in Vietnam or another FTA partner country to be qualified.
• Anti-dumping duty: Additional tariffs imposed to counter unfairly priced imports. 

2025 Tariff Landscape: What’s Changing for Apparel Imports?

US–Vietnam Trade

Vietnam and the US do not currently have a formal Free Trade Agreement (FTA), but they have agreed to start negotiations on a reciprocal trade agreement that would include tariff provisions. 

This was announced during a meeting between Vietnamese Deputy Prime Minister Hồ Đức Phớc and US Trade Representative Jamieson Greer in April 2025.

At the time of writing, the US has imposed a 46% tariff on about 90% of goods imported from Vietnam, including garments, which is much higher than the usual Most Favored Nation (MFN) tariffs that typically range around 16–32% depending on the product category (Reuters, 2025). 

This 46% tariff is part of a new US tariff policy targeting countries with trade surpluses.

Despite these high tariffs, Vietnam remains a top sourcing destination for US importers shifting away from China due to Section 301 tariffs and other political factors. 

Many US companies continue to source from Vietnam because of its competitive labor costs, skilled manufacturers, and proximity to shipping routes. The shift is also driven by the escalating US-China tariff conflict, prompting diversification of supply chains. 

EU–Vietnam (EVFTA)

The EU–Vietnam Free Trade Agreement (VietnamBriefing) continues to phase out tariffs on eligible garments. 

In 2025, many Vietnamese clothing items now enter the EU duty-free—if they meet rules of origin criteria. 

For example, a T-shirt made in Vietnam using Vietnamese or EU-sourced fabric qualifies.

But if the fabric is from China, it likely won’t qualify. In this case, the EU imposes its standard Most Favored Nation (MFN) tariff on these products.

Specially:

• The average MFN tariff for Vietnamese clothing exported to the EU is about 12%.
• Depending on the specific product category, the tariff rate can range from 12% to 18%. 

UK–Vietnam (UKVFTA)

After Brexit, the UK signed a bilateral deal with Vietnam mirroring the EVFTA.

Many clothing items imported into the UK from Vietnam are eligible for 0% tariffs in 2025 with the correct Certificate of Origin (EUR.1). 

Form EUR.1 is issued by Vietnam’s Ministry of Industry and Trade. Your supplier can apply for this document and present it at export to prove the product’s origin to UK customs authorities.

Otherwise, these goods will be subject to the UK’s standard Most Favored Nation (MFN) tariff rates of around 12%, as set by the UK Global Tariff.

China Watch

China continues to face US tariffs on garments and textiles, particularly under Section 301.

Section 301 is a U.S. trade law that allows the U.S. government to impose tariffs in response to unfair trade practices. Since 2018, the U.S. has used Section 301 to apply additional duties—typically between 7.5% and 25%—on a wide range of Chinese goods, including apparel. These tariffs remain in effect in 2025.

While the EU and UK do not impose extra tariffs like Section 301, resulting in lower tariffs on Chinese garments, they are rolling out environmental and ethical sourcing rules. 

This includes upcoming Carbon Border Adjustment Mechanisms (CBAM) and forced labour traceability laws, particularly affecting products with links to Xinjiang cotton.

FTA Cheat Sheet for Garment Importers

EVFTA:

• Who benefits: EU importers from Vietnam
• Tariff status in 2025: Many at 0%
• Key rules: Fabric-forward rule; Form EUR.1 required

UKVFTA:

• Who benefits: UK importers from Vietnam
• Tariff status in 2025: 0% for many items
• Key rules: Origin documentation needed

CPTPP:

• Who benefits: Canada, Japan, Australia, etc.
• Tariff status in 2025: Reduced or 0%
• Key rules: Yarn-forward rules apply

RCEP:

• Who benefits: ASEAN + China, Korea, Japan
• Tariff status in 2025: Limited impact on apparel so far
• Key rules: Origin rules under development

👉 Pro Tip: Most Vietnamese-made garments are eligible for reduced or zero tariffs under current FTAs—provided they meet the rules of origin. Ensure your factory and fabric suppliers follow these guidelines to unlock the full benefits.

Rules of Origin: Your Key to Unlocking Duty-Free Imports

FTA benefits depend on where your garment components come from—not just where the final item is sewn. Vietnam offers excellent opportunities for duty-free access, but your supply chain needs to align with the agreement’s requirements.

• Yarn-forward rule: The yarn used to make the fabric must originate in an FTA member country.
• Fabric-forward rule: The fabric must be woven and finished within the exporting country or FTA zone.

For most FTAs like CPTPP or EVFTA, simple cut-and-sew in Vietnam alone isn’t enough.

In reality, achieving tariff savings by aligning fabric and yarn sources with Free Trade Agreement (FTA) rules of origin (RoO) in the textile industry is not easy, as many manufacturing hubs still couldn’t compete with the robust textile scene of China.

So be sure to discuss options with your manufacturing partners/ suppliers to unlock favorable tariff benefits.

 2025 Watch List: Risks Beyond Tariffs

Tariff rates are only part of the story. Here’s what else to watch:

1. Carbon Border Adjustment Mechanism (CBAM) – EU

• Starting in 2025, the EU may impose carbon-based import fees on high-emission industries—including textiles.
• Brands must calculate and disclose carbon footprints of imported clothing.

2. Forced Labour Laws & Traceability

• The U.S. Uyghur Forced Labor Prevention Act (UFLPA) is strictly enforced.
• Imports linked to Xinjiang cotton or unverified supply chains risk detention or rejection at US ports.

3. Changing Classification & HS Codes

• Minor changes in garment design can affect tariff classification—and cost.
• Misclassification can result in penalties or border delays.

Takeaways: How to Lower Duty Costs & Avoid Border Hassles

1. Consult a customs broker to confirm HS Codes before finalising production specs. Classification errors can be costly.
2. Trace fabric origin—not just the sewing location. FTAs often require fabric to come from approved regions.
3. Ensure your supplier can provide valid Certificates of Origin (e.g. Form EUR.1 for EU/UK) to unlock duty-free access.
4. Prioritise FTA-compliant sourcing regions like Vietnam and the EU when building your supplier network.
5. Partner with a logistics provider who understands textile-specific trade rules and documentation workflows.

Need a manufacturing partner who understands the fine print of tariffs and trade agreements?
Dacotex Group is your go-to for reliable, FTA-savvy apparel production—plus full support on compliance and documentation.

👉 Let’s talk about your next import shipment.