Aluminum casting & mold design services

As of 2026, the supply chain surrounding the Japanese manufacturing industry is in the midst of unprecedented turbulence. In particular, in the procurement of “aluminum cast parts” essential for automobiles, industrial machinery, and electronic devices, protectionist tariff hikes backed by geopolitical risks and chronic soaring ocean freight rates are heavily squeezing corporate profit margins.
In this article, based on the expert knowledge of Daiwa Aluminum Vietnam, we will thoroughly explain the latest tariff trends and the reality of logistics costs related to the import and export of aluminum parts. Furthermore, we will present methods for building a “resilient supply chain” through the strategic utilization of EPAs (Economic Partnership Agreements) and integrated production in Vietnam, going beyond mere cost reduction. By the time you finish reading this article, the specific action plan for your next-generation procurement strategy should become clear.

The challenges facing the Japanese manufacturing industry are not caused by a single factor, but are the result of multiple external factors intricately intertwined. First, let’s unravel the real current state of “tariffs” and “logistics” in the global market.

Global trade rules have changed significantly over the past few years. What is particularly notable is the raising of tariffs by major countries aimed at protecting their domestic industries. For example, in the United States, additional tariff measures on steel and aluminum products under Section 232 of the Trade Expansion Act have been strengthened. In addition to the baseline uniform 10% tariff, extremely high tariff rates are occasionally set, such as 25% for some aluminum derivatives and up to 50% for imports from specific countries.

In addition, the price of aluminum ingots themselves continues to fluctuate due to changes in the international supply and demand balance. The aluminum market on the LME (London Metal Exchange) fluctuates around $2,500 USD per ton depending on the period, and raw material costs continue to remain high. Furthermore, surveillance of circumvention exports via third countries has become stricter, and the risks of falsifying the country of origin are immeasurable. The simple traditional model of “manufacturing in the cheapest country and exporting” is already collapsing due to the high tariff risks.

In addition to the tariff barrier, what troubles procurement managers is logistics costs, especially the record-breaking surge in “ocean freight rates.” From 2025 to 2026, container shipping costs on major routes have seen a sharp rise.

Even on routes connecting Vietnam and other countries, due to the impact of increased Bunker Adjustment Factors (BAF) and space shortages, ocean freight rates per 40-foot container (FEU) have surged by $2,000 to a maximum of $4,000 USD. Furthermore, as additional costs for local port utilization, an increase of 2 million to 3 million Vietnamese Dong (VND) per container has also been reported (as of March 2026).

With intense exchange rate fluctuations added to this, the total procurement cost (Landed Cost) of parts always carries the risk of jumping significantly from the time of the estimate. Even with a 20-foot container, a decline in transport efficiency is inevitable, and the logistics costs to maintain a stable parts supply network to Japan are no longer an “incidental expense” but weigh heavily as a “core cost.”

Under these severe circumstances, a powerful weapon that Japanese procurement and purchasing managers must secure is the utilization of “EPAs (Economic Partnership Agreements)” and the “CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership).”

Multiple mega FTA/EPA networks have been established between Japan and Vietnam, including the bilateral “Japan-Vietnam Economic Partnership Agreement (VJEPA),” the “ASEAN-Japan Comprehensive Economic Partnership (AJCEP)” encompassing the entire ASEAN region, and the multilateral “CPTPP.”

When general WTO agreement rates (MFN rates) are applied, aluminum parts imported to Japan (products classified under HS Code Chapter 76) may be subject to tariffs of about 3% to 5%. However, by appropriately applying preferential tariffs such as VJEPA and CPTPP, it is possible to reduce the tariff rate for many aluminum cast parts to 0% (Duty-Free).

Vietnam, in particular, has strong trade ties with Japan among CPTPP participating countries, and the phased elimination of tariffs has been progressing since immediately after the CPTPP went into effect. As a result, building a manufacturing and export base with Vietnam as a hub creates a powerful advantage of legal and permanent “tariff cost reduction,” not just a reduction in labor costs.

To receive the benefits of zero tariffs, strict procedures are required to prove that the imported aluminum parts are “originating goods” under the agreements.

Under VJEPA, the basic requirement is to obtain a “Certificate of Origin” issued by designated issuing authorities (such as the Vietnamese Ministry of Industry and Trade). On the other hand, the biggest advantage of the CPTPP is the introduction of a “fully self-certification system.” This allows the exporter, producer, or importer themselves to issue the certificate of origin, significantly reducing the lead time and fees associated with administrative procedures.

A certificate of origin based on the CPTPP is usually valid for one year, demonstrating extremely high convenience for the continuous import of mass-produced parts. However, in preparation for post-verification by customs authorities, meticulous management of manufacturing cost statements and bills of materials (BOM) is required to prove that the goods satisfy the CTC (Change in Tariff Classification) or VA (Value Added) criteria.

Key Data: 2026 Indicators Related to Aluminum Parts Import/Export and Logistics Costs

Source: 2026 Latest Global Supply Chain and Cost Trend Survey

Even if tariffs are kept at zero, the next challenge is how to absorb soaring logistics costs. What draws attention here is the “procurement shift (China Plus One, or Alternative Asia Strategy)” to Vietnam, which boasts geographical advantages and a well-developed production infrastructure.

The number of ocean transit days from Vietnam (Haiphong Port or Ho Chi Minh Port) to major ports in Japan (Tokyo, Yokohama, Osaka, Nagoya, etc.) is generally around 7 to 10 days when using direct flights. Compared to routes that transport goods from distant inland areas to ports via long-distance railways and trucks, this has the characteristic of overwhelmingly lower transport risks and easier schedule predictability.

In addition, even amidst the outcry over container shortages, since Vietnam is an important trading partner for Japan, there is a tendency for a certain amount of shipping space to be preferentially secured. To resolve logistics bottlenecks, procurement from a country with a short transport distance and abundant regular routes is an essential condition. In recent years, an increasing number of companies have raised their procurement shift rate from specific countries to Vietnam by 15% or more, aiming to avoid geopolitical risks.

In an environment where it is difficult to lower the transportation costs themselves, it is necessary to fundamentally review the “unit product price” of parts. The greatest advantage of utilizing a Japanese-affiliated aluminum casting manufacturer with advanced technological capabilities, represented by Daiwa Aluminum Vietnam, is the dramatic cost reduction achieved through an “integrated production system.”

By completing all processes—from casting (die casting and gravity casting) to heat treatment, precision machining, surface treatment, and final inspection—at a single base in Vietnam, wasteful lateral transport costs between processes can be reduced to zero. Because of this, there are cases where Japanese home appliance and automotive parts manufacturers have successfully reduced their total procurement costs by up to 30% compared to conventional methods.

Maintaining a high level of quality control (meeting Japanese customer standards) while combining tariff elimination (0%) and cost reduction through integrated production (30% reduction). This is precisely the most rational and highly effective “optimal solution for aluminum parts procurement” in an era where ocean freight rates have surged by $4,000 USD.

In this article, we explained the current state of tariffs and logistics costs in the latest aluminum parts procurement for 2026, as well as the breakthrough measures. The tariff risks of up to 50% due to protectionism and ocean freight rates soaring by thousands of dollars per container have made traditional procurement models a thing of the past.

However, by correctly utilizing agreements such as VJEPA and CPTPP, applying a 0% tariff rate, and making full use of the self-certification system valid for one year, the cost barrier can definitely be overcome. Furthermore, by carrying out integrated production from casting to machining in Vietnam—a favorable location about 7 to 10 days away from Japan—it is possible to reduce total procurement costs by up to 30%.

To strengthen the supply chain in turbulent times, collaboration with reliable overseas partners is essential. If you desire high-quality aluminum parts procurement in Vietnam or specific simulations for cost reduction, please feel free to consult Daiwa Aluminum Vietnam.