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Top apparel exporter Vietnam faces higher US tariffs than peers
['July', 'Min Read']
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HANOI, July 24 (Reuters) - Vietnam faces higher U.S. tariffs than peers and risks a further erosion of competitiveness in the clothing sector, as the largest exporter of apparel to the U.S. is excluded from a mechanism that could cut U.S. duties on some textile imports.
The decision, included in a Federal Register notice published on Thursday, could impact the supply chains of major apparel brands with large manufacturing bases in Vietnam.
Vietnam, which is still negotiating a trade deal with the U.S. under the Trump administration, faces a 12.5% tariff rate, as does China.
Vietnam overtook China last year as the largest exporter of apparel to the U.S., and it is also one of the countries with the largest trade surpluses with Washington, according to U.S. trade data.
Bangladesh, Cambodia, Indonesia and Malaysia are also the only beneficiaries named in the notice of a new "textile mechanism" that could exempt part of their apparel exports to the U.S. from the new tariffs.