The US imposes a 50% tax on a $14 billion export item in Vietnam.
The decision to impose a 30-50% tax from the US has caused many difficulties for Vietnam's wood exports, especially for kitchen cabinets and bathroom furniture products.
US increases tax to 50% on Vietnamese wood products
On September 26, 2025, US President Donald Trump announced a 30-50% tax on kitchen cabinets, bathroom cabinets, upholstered furniture and related products imported from many countries, including Vietnam. This policy will take effect from October 1, 2025, with the reason to prevent foreign goods from "flooding" the US market.
According to analysis from Vietcap Securities, the imposition of new taxes will increase the selling price of Vietnamese wood products in the US, leading to a decrease in consumer demand. However, the export market share may not change much because this policy applies to all countries.
One point that is still unclear is whether the new tax rate will be added to the 20% current corresponding tax or just calculated as a whole, which will determine whether the actual tax rate will fall between 50-70% or just 30-50%.
Wood exporting enterprises under great pressure
Among the enterprises, Phu Tai Joint Stock Company (PTB) is the most heavily affected unit. Revenue from the wood segment from the US market accounts for 60-70%, focusing on products in the right group subject to high taxes. Although PTB has full orders until the end of the fourth quarter of 2025, the risk of new orders being delayed or canceled still exists.
An Cuong Wood Joint Stock Company (ACG) is also affected, but to a lesser extent. The US only accounts for about 12% of ACG's revenue, while the domestic market contributes up to 80%. The company has the flexibility to shift consumption to the domestic market and other regions, making up for the decline.
The wood industry is currently one of Vietnam's five largest export groups, reaching an average of 14 billion USD per year. In the first 6 months of 2025 alone, wood export turnover reached 8.21 billion USD, an increase of nearly 9% over the same period.
The US market plays an important role, accounting for 55.6% of total turnover, reaching 4.6 billion USD in the first half of the year. Of which, wooden furniture accounts for 85% of the export proportion.
High taxes create short-term pressure, but in the long term, businesses need to promote market diversification and better exploit the domestic market to reduce dependence.
