In a statement dated September 30, the United States announced its decision to impose a 10% tariff on softwood and 25% tariffs on kitchen cabinets, bathroom vanities, and upholstered furniture. These rates are scheduled to take effect on October 14, 2025, with substantial increases following on January 1, 2026. At that time, tariffs on kitchen cabinets and vanities could reach up to 50%, while the rate for upholstered furniture will rise to approximately 30%.
This decision has immediately raised concerns among major exporting countries, including Canada, Mexico, and Vietnam. Data shows that in the first seven months of 2025 alone, Vietnam exported nearly $8.2 billion worth of furniture to the US, approaching China's $8.4 billion and potentially surpassing it to become the top supplier this year. The US is currently the largest market for Vietnamese wood products.
Following the Trump administration's announcement of heavy tariffs on various imported wood and furniture items, the Vietnam Timber and Forest Product Association (VIFORES), along with wood product exporters and trade agency representatives, held an online workshop with the Vietnamese Embassy in the US.
During the workshop, Mr. Ngo Si Hai, Vice Chairman and General Secretary of VIFORES, stated that over $9 billion of Vietnam's wood and furniture exports would fall under the 25% tariff category. He warned that if rates increase to 30-50% starting in early 2026, many businesses would be forced to re-evaluate their strategies, as finding alternative markets outside the US in the short term is nearly impossible. "We have no choice but to accept it, because the 25% tariff will definitely be implemented," he said.
Mr. Tran Le Huy, Vice Chairman of the Binh Dinh Province Timber and Forest Product Association, outlined the specific US tariff structure based on product classifications (HS codes), as explained by the VIFORES technical team:
- Category 1: Softwood and Sawn Timber: A 10% tariff effective October 14, 2025, under HS codes 4403 to 4407.
- Category 2: Upholstered Wood Furniture: A 25% tariff for countries including Vietnam until December 31, 2025, increasing to 30% from January 1, 2026 (HS code 940161). For comparison, the UK faces a 10% rate, while the EU and Japan enjoy 0-15%.
- Category 3: Kitchen Cabinets and Vanities: A 25% tariff for countries including Vietnam until the end of 2025, rising to 50% from 2026 (HS codes 940340, 940360, 940391). The UK faces 10%, and the EU/Japan face 0-15%.
- Additionally: A 20% reciprocal tariff on plywood (HS code 4412) will take effect on October 14, 2025.
Mr. Do Ngoc Hung, Director of the Vietnam Trade Office in the US, analyzed why Vietnam did not receive the same preferential tariff treatment as the EU or Japan. He noted that while Vietnam-US relations have been elevated to a Comprehensive Strategic Partnership, similar to the US relationships with the EU, Japan, and the UK, the tariff outcomes differ. "The main reason is concerns about Chinese enterprises shifting production to these countries to evade tariffs," Mr. Hung concluded.
The workshop concluded with key recommendations for Vietnam:
- Enhance communication with the US to demonstrate the transparency and legality of Vietnam's wood supply chain, confirming the absence of transshipment from China.
- In the long term, encourage Vietnamese enterprises to invest in establishing manufacturing facilities in the US, even on a small scale.
- Increase the use of US-origin wood within the production chain to strengthen trade relations.
