Vietnam hit with 12.5% US tariff, higher than rivals, risking top apparel exporter status

RegulationMacro Impact 4
โดย Money & Banking·Read original
Summary · why it matters

Vietnam has been hit with a 12.5% import tariff by the United States, higher than the 10% levied on competitors like Bangladesh, Cambodia, Indonesia, and Malaysia. It has also not been granted access to a new textile mechanism that could lower duties on certain textile products, threatening its position as the largest apparel exporter to the US. The measure took effect on Friday, July 24, 2026, citing insufficient enforcement of forced labor prohibition laws. Vietnam is still in trade negotiations with the US, unlike the four rival nations that have already reached agreements and gained access to the textile mechanism linked to imports of US cotton and raw materials. Vietnam overtook China last year to become the top apparel exporter to the US and is one of the countries with the highest trade surplus with the US. Global brands such as Nike, Gap, Ralph Lauren, and Under Armour use Vietnam as a key production base.

Impact on stocks 4

Consumer Discretionary▼ · 4 stocks
The Gap, Inc.
GAP
▼ NegativeTariffrelevance

Vietnam, a key production base for Gap, faces a 12.5% US tariff, higher than rivals, raising costs and threatening supply chain competitiveness.

Nike Inc
NKE
▼ NegativeTariffrelevance

Nike relies heavily on Vietnam for manufacturing; the 12.5% tariff increases costs and may erode margins relative to competitors in lower-tariff countries.

Ralph Lauren Corp Class A
RL
▼ NegativeTariffrelevance

Ralph Lauren uses Vietnam as a key production base; the higher tariff raises import costs and disadvantages it versus rivals with access to lower duties.

Under Armour Inc A
UAA
▼ NegativeTariffrelevance

Under Armour sources from Vietnam; the 12.5% tariff increases production costs and may hurt competitiveness against brands with lower-tariff sourcing.

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