Latest Furniture Export Tax from Vietnam to the US in 2025 – Comprehensive Guide for Furniture Import-Export Businesses

1. Understanding the 2025 Vietnam–US Furniture Export Tax Landscape

The year 2025 has brought significant changes to the furniture export landscape between Vietnam and the United States. As Vietnam Furniture manufacturers, we at HoangKhangVy have witnessed firsthand how these tariff adjustments impact our daily operations and strategic planning.

The evolving trade relationship between Vietnam and the US has created a complex web of tariff policies that directly affect furniture exporters and importers. These changes stem from ongoing efforts to address trade imbalances and establish more equitable trading terms between the two nations. For businesses in the furniture industry, understanding these shifts isn't just helpful-it's essential for survival and growth.

The current tariff structure represents a culmination of months of negotiations, temporary measures, and policy adjustments. What started as proposed dramatic tariff increases has evolved into a more nuanced system that affects different types of furniture exports in varying ways. This evolution reflects the importance of the furniture trade relationship between Vietnam and the US, where Vietnamese manufacturers supply a significant portion of America's furniture imports.

1.2 Purpose and Scope of This Guide

This comprehensive guide aims to provide furniture import-export businesses with practical, actionable information about the current tariff landscape. Whether you're a manufacturer looking to understand cost implications, an importer seeking compliance guidance, or a trader evaluating market opportunities, this guide addresses your specific needs.

We'll explore how these tariff changes affect pricing strategies, documentation requirements, and long-term business planning. The information presented here comes from our direct experience as Vietnam Furniture manufacturers and our ongoing interactions with customs authorities, trade partners, and industry organizations.

Don't hesitate to contact HoangKhangVy if you would like to get in touch with any of these factories or explore our extensive network of suppliers. minh@hoangkhangvy.vn

2. Timeline and Evolution of US Tariffs on Vietnamese Furniture in 2025

2.1 Initial Tariff Announcements and Suspensions

• In early April 2025, the US announced a steep 46% “reciprocal” tariff on Vietnamese furniture, shocking exporters and importers alike.
   
• This tariff was part of a countervailing duty aimed at balancing trade deficits and addressing alleged subsidies.
   
• Recognizing the impact, the US suspended the full implementation, imposing a temporary 10% tariff from April 9 to July 2, 2025.
   

2.2 Final Trade Agreement and New Tariff Framework

• On July 2, 2025, the US and Vietnam reached a trade deal:
   
  • A 20% tariff applies to most Vietnamese furniture exports to the US.
     
  • A 40% tariff applies to goods transshipped through Vietnam from third countries (e.g., China).
     
  • Vietnam reciprocally cut import tariffs on US goods to 0%, including wood and furniture.

The final agreement established a more structured tariff framework that addresses the concerns of both nations while providing clarity for businesses. The 20% tariff on direct Vietnamese furniture exports represents a compromise between the initial 10% rate and the threatened 46% rate.

The 40% tariff on transshipped goods reflects growing concerns about trade route manipulation and ensures that tariffs serve their intended purpose of regulating bilateral trade. This distinction between direct exports and transshipped goods has become a crucial factor in supply chain planning for Vietnam Furniture manufacturers.

The reciprocal zero tariffs on US imports to Vietnam have opened new opportunities for Vietnamese furniture manufacturers to source materials and components from the US, potentially improving product quality and reducing costs in certain categories.

For wood manufacturing and interior decoration businesses in general, the new U.S. tax policy has had an adverse impact on Vietnamese wood producers, but it also has some positive effects.

For furniture manufacturing companies and interior decoration businesses in general, America's new tax policy negatively affects Vietnamese furniture manufacturers while also creating certain positive impacts.

Some sourcing companies or furniture agents such as HoangKhangVy Company continue to support local manufacturers in optimizing on-site hardwood raw materials and manufacturing accessories in Vietnam to ensure maximum benefits from the tax policy.

3. Current Export Tax Rates and Their Application

3.1 Detailed Breakdown of Tariffs

The current tariff structure creates two distinct categories that every furniture exporter must understand:

• Direct Vietnamese Furniture Exports (20% Tariff): Products manufactured in Vietnam using Vietnamese and imported materials qualify for this rate. The key requirement is that the furniture must undergo substantial transformation in Vietnam, meaning the manufacturing process adds significant value beyond simple assembly.
• Transshipped Goods (40% Tariff): Furniture products that originate from third countries but are routed through Vietnam face this higher rate. This category includes products that undergo minimal processing in Vietnam or are simply repackaged for export.
• The distinction between these categories requires careful documentation and compliance with origin requirements. As Vietnam Furniture manufacturers, we maintain detailed records of our production processes, material sourcing, and value-addition activities to ensure proper classification.

3.2 Product Categories and Classification

The tariff application depends heavily on accurate Harmonized System (HS) code classification. Common furniture categories affected include:

• Wooden Furniture (HS Codes 9403.30-9403.60): This includes dining sets, bedroom furniture, office furniture, and storage solutions. The 20% tariff applies to Vietnamese-manufactured wooden furniture, making it crucial to maintain proper documentation of wood sourcing and processing.
• Upholstered Furniture (HS Codes 9401.10-9401.80): Sofas, chairs, and other upholstered items face similar tariff rates, but the complexity of materials sourcing requires additional attention to origin documentation.
• Metal and Mixed-Material Furniture: These categories often involve components from multiple countries, making origin determination more complex but equally important for tariff classification.

Accurate HS code classification isn't just about compliance—it directly impacts your landed costs and competitive positioning in the US market. We recommend working with experienced customs brokers who understand the nuances of furniture classification.

3.3 Comparison with Previous Years

The current 20% rate on Vietnamese furniture exports represents a middle ground in the global tariff landscape. Chinese furniture imports often face higher tariffs, while some other Asian countries may enjoy preferential rates under specific trade agreements.

This positioning creates opportunities for Vietnam Furniture manufacturers to compete more effectively against Chinese producers while maintaining competitiveness against other regional suppliers. The key is leveraging Vietnam's manufacturing capabilities, skilled workforce, and strategic location to deliver value that justifies the tariff cost.

4. Policy Drivers Behind the New Tariff Regime

4.1 US Trade Deficit and “Reciprocal” Tariff Logic

• The US imposed tariffs to address trade imbalances and counteract perceived unfair trade practices.
• The “reciprocal” tariff rate was calculated based on Vietnam’s import tariffs on US goods.

4.2 Vietnam’s Trade Policy Responses

Vietnam's strategic response through Decree No. 73/2025 demonstrates the government's commitment to maintaining favorable trade relationships while protecting export industries. The decree's provisions for reducing import taxes on US goods create new opportunities for Vietnamese manufacturers to source materials and equipment.

This policy coordination between tariff management and import facilitation shows how governments can work together to maintain trade relationships despite challenges. For Vietnam Furniture manufacturers, this creates opportunities to improve product quality and reduce costs through strategic sourcing.

4.3 Impact on Bilateral Trade and Supply Chains

• Tariff changes have prompted Vietnamese manufacturers to rethink supply chains and diversify markets.
• US buyers are adjusting sourcing strategies to manage increased costs.

5. Practical Implications for Furniture Exporters and Importers

5.1 Cost Impact and Pricing Adjustments

The 20% tariff significantly impacts pricing strategies for Vietnamese furniture exports. For a typical furniture shipment valued at $100,000, the tariff adds $20,000 to the landed cost, requiring careful management of margins and pricing structures.

Vietnam Furniture manufacturers must now consider several approaches to managing these costs:

• Value Engineering: Redesigning products to maintain functionality while reducing material costs or manufacturing complexity.
• Efficiency Improvements: Investing in automation and process optimization to reduce manufacturing costs and offset tariff impacts.
• Strategic Sourcing: Utilizing Vietnam's reduced tariffs on US imports to source materials that improve product quality or reduce costs.
• Premium Positioning: Focusing on higher-value products where the tariff represents a smaller percentage of total value.

5.2 Compliance and Documentation Best Practices

Proper documentation is crucial for avoiding the higher 40% tariff rate applied to transshipped goods. Essential documentation includes:

• Certificate of Origin: Detailed documentation proving Vietnamese manufacturing origin, including material sourcing records and production process documentation.
• Bill of Materials: Comprehensive listing of all materials used in production, including their origins and values.
• Manufacturing Records: Documentation of production processes, labor inputs, and value-addition activities performed in Vietnam.
• Quality Certificates: Product testing and quality assurance documentation that demonstrates Vietnamese manufacturing standards.

At HoangKhangVy, we maintain comprehensive documentation systems that track every aspect of our manufacturing process. This attention to detail ensures compliance while providing the transparency that US importers increasingly demand.

An advice for Vietnamese furniture manufacturers and interior decoration companies is to systematize input documents and invoices. Priority should be given to using raw materials sourced in Vietnam as well as locally manufactured accessories. Having clear traceability documents will make it easier for businesses to apply for certificates of origin to enjoy tariff preferences.

5.3 Risk Management and Strategic Adaptations

The current tariff environment requires proactive risk management strategies:

• Market Diversification: While the US remains an important market, exploring opportunities in other regions reduces dependence on any single market.
• Product Portfolio Management: Developing product lines that maximize value while minimizing tariff impact through strategic design and manufacturing approaches.
• Supply Chain Resilience: Building relationships with multiple suppliers and maintaining inventory buffers to manage potential disruptions.
• Technology Investment: Implementing systems that improve efficiency, quality, and compliance while reducing long-term costs.

6. Official Resources and How to Stay Informed

6.1 US Customs and Border Protection (CBP)

The US Customs and Border Protection (CBP) website provides the most current information on tariff schedules, documentation requirements, and compliance procedures. Regular monitoring of CBP announcements helps businesses stay current with policy changes.

The United States Trade Representative (USTR) office publishes policy updates and trade negotiation developments that may affect future tariff structures.

6.2 Vietnam Ministry of Industry and Trade

The Ministry of Industry and Trade provides guidance on export procedures, documentation requirements, and trade policy developments. Their website offers resources in both Vietnamese and English.

The Vietnam Customs Department publishes updates on export procedures and requirements, ensuring that Vietnam Furniture manufacturers understand their obligations under current agreements.

6.3 Trusted Trade News and Legal Advisory Sources

Industry publications and legal advisory services provide analysis and interpretation of policy changes. These sources help businesses understand not just what policies mean, but how they should respond.

Professional associations and trade organizations often provide member services that include policy updates and compliance guidance specifically tailored to the furniture industry.

7. Conclusion: Navigating the 2025 Vietnam–US Furniture Export Tax Environment

The 2025 tariff framework is both a challenge and an opportunity for Vietnamese wood manufacturers. Although the 20% tariff on Vietnam's wood exports increases costs, it also provides certainty, allowing for strategic planning and investment decisions. And above all, Vietnam's tariff is still lower than other countries in the region such as: Thailand at 36%, Indonesia 32%, Cambodia 36%, ....

Success in this environment requires understanding that tariffs are only one factor in global competitiveness. Vietnamese manufacturers, who focus on quality, innovation and customer service, continue to thrive by delivering value that is worth the tariff costs.

The key to success lies in viewing these challenges as opportunities to strengthen competitive advantage. By investing in efficiency, quality and customer relationships, Vietnamese furniture manufacturers can maintain and grow their market position despite tariff pressures.

As we grow, it is important to stay informed about policies, maintain excellent compliance and build strong relationships with customers and suppliers. The future of the furniture industry depends on our ability to adapt and excel in this changing trade environment.

8. FAQs and Unique Buyer Questions

8.1 Is the 20% furniture export tariff from Vietnam to the US currently enforced on all shipments?

Yes, the 20% tariff is currently enforced on all direct Vietnamese furniture exports to the US. However, it's important to note that this rate applies specifically to goods that qualify as Vietnamese-origin products. Transshipped goods face a higher 40% rate. The tariff is collected by US Customs upon entry and is typically paid by the importer, though the cost impact is often shared through negotiated pricing arrangements between exporters and importers.

8.2 What defines a “transshipped” good under the US–Vietnam tariff framework?

A "transshipped" good is a product that originates from a third country but is routed through Vietnam for export to the US. This includes products that undergo minimal processing in Vietnam, such as repackaging, labeling, or simple assembly operations that don't constitute substantial transformation. To avoid the higher 40% tariff rate, products must demonstrate substantial transformation in Vietnam, meaning significant value addition through manufacturing processes that change the product's character or use.

8.3 Which categories of Vietnamese furniture exports are most affected by the 2025 US tariffs?

The categories most significantly affected include:

Wooden Furniture: Dining sets, bedroom furniture, and office furniture face substantial cost increases due to the 20% tariff.

Upholstered Furniture: Sofas, chairs, and other upholstered items are heavily impacted, particularly in the mid-market segment where price sensitivity is high.

Assembled Furniture: Products that involve significant assembly processes in Vietnam benefit from the lower 20% rate compared to transshipped goods.

High-Volume, Price-Sensitive Items: Products competing primarily on price face the greatest challenges, while premium products with unique design or quality features are less affected.

8.4 How do Vietnam’s 2025 furniture export tariffs to the US compare to tariffs imposed on other major export markets?

Vietnam's 20% furniture export tariff to the US is moderate compared to other major markets:

China: Faces higher tariffs on furniture exports to the US, often exceeding 25% for many categories.

European Union: Vietnamese furniture exports to the EU generally face lower tariffs, often under 10% for many categories.

Japan: Tariffs on Vietnamese furniture exports to Japan are typically lower than US rates.

Other ASEAN Markets: Trade agreements often provide preferential rates, making these markets increasingly attractive for Vietnamese exporters.

This positioning allows Vietnam Furniture manufacturers to compete effectively in the US market while maintaining competitiveness in other regions, supporting a diversified export strategy that reduces dependence on any single market.

At HoangKhangVy, we are committed to helping our partners navigate these changes with transparency and expertise, ensuring that Vietnam Furniture manufacturers continue to deliver quality and value to the US market despite evolving trade policies.

Act now and embark on a fruitful partnership with HoangKhangVy. Your journey towards procuring impeccably crafted, economically priced, and ethically produced furniture begins here. Reach out to us, and let’s lay the foundation for a prosperous and sustainable business venture in the thriving Vietnamese furniture market.

• Email us: minh@hoangkhangvy.vn