Moving Plush Production from China to Vietnam: A 2026 Playbook for US Brands

1. Why US brands are moving plush out of China

For two decades, China was the default answer for plush. Dongguan and the surrounding Pearl River Delta built the deepest toy supply chain in the world: fabric, embroidery, eyes, sound modules and packaging within a day’s drive. That depth is still there. What changed is the cost of depending on one country.

The most visible sign of how far this reached the toy business: the Supreme Court case that ended the IEEPA tariffs, Learning Resources, Inc. v. Trump, was brought by an educational toy company.

2. The tariff timeline, 2018 to 2026

The rates below are historical and dated. They are here to show how often the ground moved, not to price an order. Before you compare quotes, look up the current rate for your exact HTS code and confirm it with your customs broker.

1. 2018–2019Section 301 duties on Chinese goods, Lists 1 to 4A.

   List 4B, which covered many toys along with phones, laptops and game consoles, was suspended indefinitely in December 2019 under the Phase One deal and never took effect. Whether a given plush line was hit depends on its HTS code.

2. Feb–Mar 2025IEEPA “fentanyl” duties on China.

   Two rounds of 10% added a 20% duty on China-origin goods.

3. Apr 2–10, 2025“Reciprocal” tariffs.

   Vietnam was announced at 46%, then paused at 10%. China escalated to 145% in total including the fentanyl duty. Toy companies warned of price rises of up to 50%.

4. May 12, 2025Geneva truce.

   The US cut duties on Chinese goods from 145% to 30% for an initial 90 days, later extended.

5. Jul 31 – Aug 7, 2025Vietnam at 20%, transshipment at 40%.

   An executive order set Vietnam’s reciprocal rate at 20% and a 40% rate for goods CBP finds were transshipped to evade duties.

6. Oct 30, 2025New US–China truce.

   Talks between the two presidents in South Korea produced a further de-escalation.

7. Feb 20, 2026Supreme Court: IEEPA does not authorize tariffs.

   In Learning Resources, Inc. v. Trump (6–3), the Court held that tariffs are a power of Congress. The IEEPA tariffs, including the 2025 reciprocal and fentanyl duties, fell away; refunds are a separate question.

8. Feb 24, 2026Section 122 surcharge.

   A temporary 10% duty on most imports under the Trade Act of 1974, limited to 150 days.

9. Jul 24, 2026Section 301 forced-labor duties on 60 economies.

   As the Section 122 surcharge expired, USTR imposed 10% or 12.5% duties. Global Trade Alert lists China and Vietnam among the economies at 12.5%, and notes that for China the duty applies in addition to the existing Section 301 duties. Some tariff lines are exempt.

10. Aug 13, 2026De minimis stays closed.

    The Court of International Trade upheld the suspension of the US$800 duty-free de minimis treatment. Congress has legislated its permanent end from July 2027. Direct-to-consumer brands shipping small parcels are affected most.

3. Where US toy imports come from now

Trade data shows the shift in where US toys come from. Figures from secondary analyses of US import statistics differ slightly in scope, so the charts state which source and product range they use.

Two readings matter for a plush buyer. China is still by far the largest source, and will stay the reference point for price and material availability. And Vietnam is now an established second source for US toys, not an experiment: the factories, labs, freight lanes and paperwork for US-bound toys already exist there.

Demand itself is steady rather than booming: Circana reported US toy industry dollar sales up 6% in 2025, with plush among the categories that declined that year. That favors brands that protect margin and continuity over brands chasing the lowest unit price.

4. What moves well to Vietnam, and what stays

Not every plush moves equally well. The comparison on Vietnam vs Dongguan goes factor by factor; the short version:

One honest caveat: Vietnam imports a large share of its specialty fabrics and trims, many of them from China. That adds lead time to designs that depend on unusual materials, and it is one reason a pilot should start with styles built on standard materials.

5. Country of origin: the rule that decides your duty

US duty follows the country of origin, and origin is a legal test, not a shipping address. For goods made from materials of more than one country, CBP looks at where the product was substantially transformed: where it became a new article with a new name, character and use. For plush, the decisive operations are typically cutting, sewing, stuffing and finishing the toy. CBP decides case by case, and an importer can request a binding ruling for certainty.

Takara declares origin where production actually happens and keeps the production records for each order. A supplier that offers to “ship Chinese goods through Vietnam” is offering a customs violation, not a sourcing strategy.

6. What has to be redone when the factory changes

Safety rules follow the market, not the factory: a plush sold in the US needs ASTM F963 and CPSIA compliance wherever it is made. What changes when production moves is the evidence and the labels tied to the old site.

The CPSIA guide for plush toys explains each of these requirements in detail.

7. The playbook: moving a plush line in eight steps

A move that works looks boring from the outside: one style at a time, nothing shipped before it is tested, and the old source kept warm until the new one has delivered twice.

1. Step 1Map your SKUs and their landed cost.

   For each style: volume, reorder rhythm, materials, markets and today’s landed cost per unit including duty. This shows which styles are worth moving.

2. Step 2Pick one or two pilot styles.

   Choose cut-and-sew plush on standard materials with steady volume. For export, custom plush through Takara starts at 1,000 pieces per design.

3. Step 3Transfer the specification.

   Approved golden sample, patterns or CAD, bill of materials, color references, label artwork and the existing test reports, so the new factory reproduces your standard, not its interpretation.

4. Step 4Sample in Vietnam.

   First sample in 7–10 working days. The sample fee is US$100–300 per design and includes up to 3 revision rounds. Compare it side by side with the golden sample.

5. Step 5Test and register.

   Test the approved sample and risky components early, then production units for the certificate. Register the new facility in Pennsylvania and prepare new tracking and law labels.

6. Step 6Run the pilot order.

   Production from 30 days after sample approval and deposit, with inspection against the approved sample before packing.

7. Step 7Ship and file.

   FOB Cat Lai (Ho Chi Minh City), or CIF or DDP to your warehouse. Issue the new CPC and give your broker the data for eFiling before the vessel arrives.

8. Step 8Review and scale.

   Compare quality, lead time and landed cost with the China source over two deliveries, then move the next group of styles. Keep the China source qualified as a backup.

On Takara’s reference schedule, a custom plush takes about 55 days from brief to delivery, before ocean transit. Rohto Vietnam’s blind-box plush program shows the speed when the specification is clear: R1 samples for the first 3 designs in 7 days, and 23,400 units delivered 25 days ahead of contract.

8. Comparing landed cost honestly

Unit price is the number everyone compares, and the one that decides the least. A fair comparison puts both origins through the same landed-cost lines:

The landed-cost worksheet runs these sums in your browser for both origins. Takara can quote the same specification from partner factories in both countries, so the comparison uses real numbers rather than estimates.

For the duty, marks and labels of each destination, see the US export checklist and the export guides by country.

9. Seven mistakes in China + 1 moves

1. Moving everything at once. A full switch removes the fallback exactly when the new supply chain is least proven.
2. Comparing unit price only. Duty, freight, testing and one-time costs decide the answer, and they differ by style.
3. Pricing the move on last year’s tariffs. Rates on China and Vietnam changed repeatedly between 2025 and 2026. Use the rate in force on the day of import.
4. Assuming test reports transfer. A report from the old factory does not certify production at the new one.
5. Reusing the old law-label number. Pennsylvania registrations belong to a facility; a new factory needs its own.
6. Picking the hardest style for the pilot. Start with a style on standard materials. Specialty fabrics imported into Vietnam add lead time that a pilot does not need.
7. Treating transshipment as a shortcut. Origin follows substantial transformation. Routing Chinese goods through Vietnam is evasion, and CBP enforces it.

10. What to watch in 2027

11. Frequently asked questions