Vietnam is renowned for its unique bamboo products.
The US tariffs threaten Vietnam’s unique craft culture, but there are ways we can provide support through our purchases.
In early 2025, U.S. President Donald Trump announced a “reciprocal” tariff policy targeting over 180 countries, with Vietnam facing a 46% tariff on goods exported to the U.S. This policy, set to take effect on April 9, 2025, aims to address the U.S. trade imbalance, which heavily favors Vietnam due to its significant trade surplus. With Vietnam’s exports to the U.S. reaching $136.6 billion in 2024, the country now confronts a severe economic shock, particularly in the Home Decor and Handicraft industry—a key contributor to national exports.
This article provides a detailed analysis of the tariff’s context, its specific impact on the Home Decor and Handicraft sector, macroeconomic consequences, and viable strategies to navigate this challenge.
Context of the Tariff and the Role of the U.S. Market
The U.S. is Vietnam’s largest export market, accounting for approximately 28% of total export value in 2024, equivalent to $136.6 billion. The Home Decor and Handicraft industry, encompassing products like decorative wooden items, wicker, and artisanal crafts, contributed around $4 billion to this figure, representing 35% of the sector’s export value (according to Vietcraft). Prior to the tariff announcement, the industry was projected to grow robustly, reaching $4 billion in 2025, driven by strong U.S. consumer demand.
However, the 46% tariff threatens to derail this outlook. The tariff not only increases the price of Vietnamese goods in the U.S. but also erodes their competitiveness against products from other countries.
To illustrate the tariff’s effect, consider a decorative wooden product with a factory price of $100 in Vietnam. A 46% tariff adds $46 in costs, raising the U.S. retail price to $146. In contrast, a similar product from India, facing a 27% tariff, incurs an additional $27, resulting in a total price of $127. Goods from Mexico, exempt from tariffs under the USMCA agreement, remain at $100. This price disparity makes Vietnamese products significantly more expensive, diminishing their competitiveness on the shelves of major U.S. retailers like Walmart or Target.
Specific Impacts on the Home Decor and Handicraft Industry
Vietnam’s Home Decor and Handicraft industry is dominated by small and medium enterprises (SMEs), which account for 80% of businesses in the sector. These SMEs typically operate with limited capital, highly skilled labor, and low profit margins of 10-15%. The 46% tariff imposes additional costs that exceed these margins, forcing businesses to raise prices (risking customer loss) or cut costs (compromising product quality). Quality is a critical factor enabling Vietnamese products to compete with rivals from China or India, so reducing it could lead to long-term market share losses.
According to the Vietnam Bamboo and Rattan Association, a 30-40% drop in U.S. exports due to the tariff could result in approximately 50,000 job losses in 2025.
The Home Decor and Handicraft sector employs a significant number of artisans, particularly in traditional craft villages such as Phú Vinh (Hanoi) and Cát Đằng (Nam Định). According to the Vietnam Bamboo and Rattan Association, a 30-40% drop in U.S. exports due to the tariff could result in approximately 50,000 job losses in 2025. These losses would not only impact workers directly but also have ripple effects on families and communities reliant on the industry.
Major brands like IKEA, Walmart, and Target—key buyers of Vietnamese Home Decor products—are likely to shift orders to countries with lower tariffs, such as Indonesia or Malaysia, to optimise costs. For instance, Indonesia is ramping up exports of wooden and rattan furniture, leveraging abundant raw materials and preferential tariff rates. If Vietnam loses these orders, not only the handicraft industry but also related sectors like transportation, logistics, and raw material supply (wood, bamboo, rattan) will suffer significant losses.
Macroeconomic Impacts
The World Bank forecasts that the 46% U.S. tariff could reduce Vietnam’s GDP growth by 1.2 percentage points in 2025. Specifically, the government’s 8% growth target may fall to 6.8%. This decline stems from reduced exports—Vietnam’s primary economic driver—and spillover effects on related industries such as manufacturing, services, and agriculture (which supplies raw materials).
In the U.S., the Peterson Institute for International Economics predicts that prices of imported Vietnamese goods could rise by 30-50%, depending on the product. For example, a $200 rattan furniture set could increase to $260-$300 post-tariff. This price hike reduces U.S. consumer purchasing power, particularly amid ongoing inflation concerns. Ironically, the tariff policy, intended to protect U.S. domestic production, may exert upward pressure on consumer prices, further dampening demand for Vietnamese goods.
The decline in the Home Decor and Handicraft sector will reverberate across supporting industries. For instance, a 30% drop in exports could reduce demand for container shipping from Hai Phong port to the U.S., leading to revenue losses for logistics companies. Similarly, industries like packaging production and timber harvesting will face downturns.
Explore Online Marketplaces
Online marketplaces have transformed how Vietnamese handicraft businesses connect with international buyers, offering a vast selection of products complete with descriptions of craftsmanship, materials, and sustainability efforts. These platforms serve both individual consumers seeking unique decor and businesses looking for bulk orders, making them a versatile starting point.
Amazon Global is a key platform, featuring Vietnamese vendors selling items like bamboo lanterns, rattan coasters, and ceramic vases. Searching for “Vietnamese handicrafts” or specific products like “lacquerware” reveals a range of options, often with international shipping. Etsy, a haven for artisanal goods, hosts Vietnamese sellers offering handmade silk-embroidered wall hangings, hand-carved wooden figurines, and eco-friendly wicker baskets, many with customisation options. Alibaba excels for wholesale purchases, connecting buyers with manufacturers of large-scale rattan furniture or decorative wooden panels, while AliExpress caters to smaller retail orders, such as bamboo serving trays or handwoven mats. Lazada and Shopee, popular in Southeast Asia, feature Vietnamese sellers offering ceramics and textiles, with expanding international shipping to regions like the EU, Australia, and North America.
Connect with Vietnamese Trade Fairs and Exhibitions
International trade fairs offer a direct way to source Vietnamese handicrafts from artisans, cooperatives, and exporters, showcasing innovative, high-quality products ideal for building long-term supplier relationships, especially amid tariff disruptions. These events provide a platform to explore sustainable designs and network with industry leaders.
Lifestyle Vietnam, held annually in Ho Chi Minh City, stands out as a premier trade fair, featuring bamboo furniture, rattan lighting, and hand-painted ceramics. The 2026 event, accessible via Lifestyle Vietnam, will attract buyers from the EU, Japan, and Australia, with virtual attendance options. Ambiente in Frankfurt, Germany, draws Vietnamese exhibitors presenting minimalist, eco-friendly bamboo tableware and lacquered trays, perfect for European markets. Maison & Objet in Paris highlights unique Vietnamese rattan rugs and carved wooden sculptures, appealing to high-end retailers. Vietnam Expo in Hanoi, with its dedicated handicraft pavilion, showcases silk lanterns and bamboo wall art, offering international reach.
Partner with Import/Export Agents
For large-scale purchases, import/export agents streamline the sourcing of Vietnamese handicrafts by managing supplier vetting, customs, and logistics, navigating complex trade regulations critical in the context of the U.S. tariff. These professionals ensure a smooth process for businesses or individuals seeking bulk quantities.
Find agents through B2B platforms like Alibaba, Global Sources, or TradeIndia, which list specialists in handicrafts with detailed profiles and client reviews. The Vietnam Trade Promotion Agency (VIETRADE), accessible at vietrade.gov.vn, provides a directory of certified agents familiar with markets like the EU or Japan. Freight forwarders, such as DHL Global Forwarding or Maersk, also connect buyers with experienced Vietnamese agents, while local chambers of commerce in the U.S., EU, or Australia offer trade contacts.
Visit Specialty Retail Stores
In the EU, stores like Depot in Germany or Maisons du Monde in France carry bamboo tableware, rattan chairs, and lacquered decor, popular due to tariff reductions. Fair-trade shops in Amsterdam feature handwoven textiles. In Japan and South Korea, retailers like Muji or Lotte Department Store stock Vietnamese ceramics, silk lanterns, and embroidered cushion covers, valued for minimalist designs. Australian and New Zealand fair-trade boutiques in Sydney or Auckland sell wicker baskets and wooden carvings, marketed as sustainable decor. In Canada and the U.S., stores like Pier 1 Imports or World Market offer Vietnamese rattan furniture and ceramic vases, though availability may decline post-tariff.
Engage with Vietnamese Craft Villages Virtually
Access villages via Vietcraft’s website, which lists contacts for cooperatives like Phú Vinh’s bamboo basket producers. Follow village social media pages, such as “Cát Đàng Rattan Crafts” on Instagram, for product updates and inquiries. NGOs like Craft Link or Mekong Creations sell village products online, including hand-stitched textiles and pottery, with international shipping.
Leverage B2B Platforms for Wholesale Purchases
Alibaba lists suppliers offering 1,000-unit orders of bamboo placemats or rattan baskets, with OEM services for custom designs. Global Sources features manufacturers of wooden wall art and ceramic vases, with trade show connections. TradeIndia includes Vietnamese exporters of lacquerware and wicker furniture, filterable by country. EC21 offers products like handwoven rugs and bamboo lighting, with global reach.
Support Sustainable and Ethical Brands
Hoi An Handicraft specializes in bamboo screens and rattan ottomans, shipping to the EU, U.S., and Australia. Mekong Creations offers hand-embroidered table runners and bamboo placemats, empowering rural women artisans. Green Living Vietnam provides FSC-certified wooden carvings and lacquerware, partnering with EU distributors. Anan Saigon sells modern ceramic pottery and bamboo lighting, available at global design fairs.
Information for this article was sourced from Lifestyle Vietnam Newsletter
