The US China tax policy tightening in July 2025 has triggered a new wave of global trade disruptions. The US government officially announced a plan to revoke or tighten a series of tax incentives on imported goods from China, particularly in sectors such as electronics, building materials, and consumer goods. This move is seen as a strategy to protect domestic manufacturing and increase pressure on China’s supply chain. However, Vietnamese businesses, as part of the global supply chain, are also being indirectly affected.
US China tax policy creates 5 major impacts on Vietnamese businesses
1 Fluctuating input costs
If raw materials or semi-finished goods originate from China, their prices may spike due to new US tariffs disrupting global supply.
2 Intensified competition in the US market
As Chinese goods face higher tariffs, Vietnam may become an alternative source. However, this also means countries like Thailand, India, and Mexico will accelerate their exports, making the US market more competitive than ever.
3 Risk of origin fraud investigations
Some Chinese manufacturers may attempt to relabel their goods as Vietnamese to avoid US tariffs. This raises the risk of Vietnam being investigated for anti-circumvention by the US government.
4 Opportunity to expand market share
By leveraging trade agreements such as CPTPP and EVFTA, Vietnamese exporters can gain market share in the US through legal and strategic pathways.
5 Increased pressure for transparency and export standardization
Strict compliance with origin traceability, technical standards, and packaging regulations will become essential for long-term success in the US market.
Sekino’s proactive response to the US China tax policy shift
As a company specializing in exporting bathroom accessories, Sekino is well aware of the impacts caused by shifts in international trade. To stay ahead, the company has taken strategic steps:
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Diversifying material sourcing to reduce dependence on Chinese suppliers
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Strengthening documentation and origin control to ensure full transparency with partners in the US, Japan, and the EU
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Improving product quality and standardization to meet the increasing demands of global markets
Conclusion
The Tax policy is reshaping the global trade environment. For Vietnamese businesses, this is a critical moment filled with both risks and opportunities. Adapting early, optimizing supply chains, and committing to international standards will be key to long-term, sustainable growth.
