Quick answer: As of October 2026, Vietnam and India remain sourcing options for many businesses, but neither is automatically safer than China in every situation. U.S. Section 301 investigations in 2026 included all three economies in separate investigations covering structural excess capacity and forced-labor import prohibitions. The practical question for importers is how their product, supplier relationships, country of origin, and supporting records affect their own exposure.
Moving production out of China can be a reasonable way to diversify your supply chain. But changing a manufacturing location doesn’t automatically resolve every sourcing, documentation or compliance concern.
A stronger sourcing decision considers more than the country on the purchase order. It also looks at the suppliers behind the product, the materials they use, the origin of those materials, and the records available to support the information.
Is Vietnam safer than China for sourcing in 2026?
Not automatically. Vietnam and India were included alongside China in two separate Section 301 investigations initiated by the United States Trade Representative (USTR) in March 2026. In July, USTR announced tariff action in the forced-labor investigation, with rates and exemptions varying by economy and product. This means a change in sourcing country does not, by itself, eliminate trade-related exposure.
What did the 2026 Section 301 investigations cover?
In March 2026, the United States Trade Representative (USTR) initiated two separate Section 301 investigations relevant to sourcing decisions. The first, announced on March 11, examined structural excess capacity and production in manufacturing sectors across 16 economies, including China, Vietnam and India (see USTR announcement for details). The second, announced on March 12, examined whether 60 economies effectively prohibited the importation of goods produced with forced labor. China, Vietnam and India were included in this investigation as well (see USTR announcement for details).
In July 2026, USTR announced final tariff action in the forced-labor investigation. The additional Section 301 duties vary by economy, with product exemptions and other conditions applying. These duties are separate from other applicable tariffs and do not mean that every product from a named economy faces the same total rate (see USTR announcement for details).
Why doesn’t switching countries remove your exposure?
Changing countries can diversify where a product is manufactured, but it doesn’t automatically resolve every tariff, origin or compliance question.
Three areas are worth reviewing:
- Material sourcing: A new manufacturing partner may still rely on the same upstream suppliers for fabrics, components or other inputs. Understanding those relationships can help identify dependencies that a factory change alone won’t reveal.
- Country of origin: Customs origin is determined under the applicable rules for the product. The location of final assembly may not, by itself, determine origin. Businesses should confirm the relevant rules with a licensed customs broker.
- Supporting documentation: Supplier records, material information and production documents can help substantiate claims about the product and its supply chain. A supplier file that stops at the factory name may leave important questions unanswered.
A country change can still be valuable. The goal is to assess it alongside material origins, applicable trade measures and the evidence available to support the sourcing decision.
What supplier records should you keep on file?
Useful supplier records to review include:
- Supplier identity: The company supplying each key raw material or component, rather than only the final manufacturing facility.
- Material origin: Available information about where the materials and components are produced, including the relevant supplier or facility details.
- Supporting records: Purchase records, material declarations, production records and other documents that help connect the inputs to the finished product.
The records available will vary by supplier, product and sourcing arrangement. If a supplier cannot provide certain information, record the gap and determine what additional evidence may be available. For a broader framework on evaluating suppliers beyond unit price, see The Supplier Scorecard.
A supplier file doesn’t need to look identical for every product. It should provide enough reliable information for your team to understand the supply chain and identify questions that need further review.
| Basic supplier file | More complete supplier file |
| Supplier name and country | Every key raw material and who makes it |
| Unit price and MOQ | Where each input is produced |
| A signed PO | Records connecting inputs to your finished product |
What if you don’t want to manage all of this yourself?
Understanding supplier visibility is one thing. Getting that information from suppliers, following up on documentation, and getting a closer look at what’s happening on the ground is another.
That’s part of the work MOVE Supply Chain supports for its clients.
This October, the MOVE team is going back to China for vendor visits. We were there earlier this year, and we’re heading back to continue that work with the suppliers behind our clients’ products. We wrote about why this matters in Supplier Verification 101: China + Vietnam, This October.
During these visits, the team gets a closer look at the supplier operation, materials, production processes, and other details that matter to the work being managed for clients.
The goal isn’t simply to visit a factory. It’s to give clients another layer of visibility into the suppliers they rely on, without requiring them to fly to China themselves.
And that’s important because supplier visibility doesn’t stop at the name and location of your manufacturing partner. The more you understand about the operation and the supply chain behind your product, the better positioned you are to identify questions that need further review.
If you’re in China for Canton Fair this October, we’d also love to meet you. Come say hi to the MOVE team while we’re there.
How do you compare sourcing countries without guessing?
Compare sourcing options using consistent criteria and information specific to your product and suppliers. Consider:
- Supplier capability: production capacity, expertise and quality controls.
- Cost and lead time: total landed cost, production timelines and shipping considerations.
- Material visibility: access to information about key materials, components and upstream suppliers.
- Documentation: availability and reliability of records supporting supplier, material and production details.
- Trade requirements: applicable tariffs, origin rules and product-specific compliance obligations.
A country’s general reputation or recent trade headlines cannot tell you how every product in your supply chain is exposed.
MOVE Supply Chain’s free Global Sourcing Matrix can help you organize your sourcing countries side by side and identify areas that may need a closer review.
If you’re currently comparing suppliers or considering a sourcing change, you can explore the Matrix as a starting point for your assessment.
The Matrix is a comparison resource, not a determination of tariff liability or product compliance. For product-specific classification, customs origin and regulatory questions, consult a licensed customs broker or qualified trade professional.
Still wondering if your new sourcing country is actually safer?
If you’re considering a move and still have questions about your specific sourcing situation, you can also ask Lara’s AI:
“Is my new sourcing country actually safer than the one I left?”
Use the conversation to think through the sourcing decision, the potential exposure, and the information you may still need to review.
What should you do this week?
Start with one of your best-selling products and trace the available information through three levels: your direct supplier, the suppliers providing key materials or components, and the locations where those inputs are produced.
Note which details are documented, which are based on supplier assurances, and which are still unknown. You don’t need to review every supplier at once. Starting with a product that represents a significant share of your sales or sourcing volume can help your team prioritize its next steps.
This is the kind of sourcing and compliance work MOVE Supply Chain supports with growing DTC brands: improving supplier visibility, organizing documentation and helping teams make more informed operational decisions.
This review can also help you identify which questions need input from a customs broker or trade compliance specialist.
Frequently Asked Questions
Is Vietnam safer than China for sourcing in 2026?
There is no universal answer. Vietnam, India, and China were included in separate 2026 Section 301 investigations, but sourcing exposure depends on the product, applicable trade measures, origin rules, supplier relationships, and supporting documentation.
Does the Section 301 forced-labor investigation mean Vietnamese factories use forced labor?
No. The investigation examined whether governments effectively prohibited the importation of goods produced with forced labor. It was not a finding that individual factories in Vietnam or other named economies use forced labor.
What supplier documentation should DTC brands keep?
Useful records include supplier identity, available information on the origin and production of key materials, and supporting documents that connect inputs to the finished product. The appropriate records depend on the product, sourcing arrangement, and applicable requirements.
Does moving final assembly change a product’s country of origin?
Not necessarily. Customs origin depends on the applicable rules for the product, and final assembly alone may not determine origin. Consult a licensed customs broker for product-specific guidance.
Until next time,
— Lara
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