Tesla and Samsung are urging Washington not to impose fresh tariffs on Vietnam, according to submissions to the US Trade Representative reviewed by Reuters, as the Trump administration races toward a November 29 deadline to conclude a trade probe into Vietnam's intellectual property practices. The split among American businesses over the case shows how deeply Vietnam is now woven into the supply chains of the world's biggest manufacturers — and how much is at stake for US consumers if new duties follow.
The investigation, opened in May under Section 301 of the Trade Act of 1974, examines whether Vietnam's acts, policies and practices on intellectual property protection and enforcement are unreasonable or discriminatory and burden or restrict US commerce. The administration designated Vietnam a "priority foreign country" in its annual Special 301 intellectual property review on April 30 — the first jurisdiction in 13 years to be added to the most serious watchlist category, according to Reuters.
Washington has accused Vietnam of "a persistent failure to resolve long-standing concerns about IP protection and enforcement." A separate probe into alleged excessive capacity is also underway. Vietnam has urged Washington to conduct its investigations objectively, Reuters reported.
The November 29 Deadline
The November 29 date is the deadline by which the administration plans to conclude the intellectual property probe, Reuters reported on November 2. It is a decision date, not a tariff start date: under the trade law, the US Trade Representative must determine the matter within six months, subject to a possible three-month extension in specified circumstances, according to trade-law summaries of the investigation notice.
Public comments on the probe closed on July 2, and it is those filings that reveal the sharp divide among businesses. Possible outcomes include tariffs, other trade measures, or no new action at all. What form any tariffs might take — general or sector-specific — is not yet clear, Reuters noted.
The timing matters because Vietnam already faces a general 12.5 percent tariff on its goods, imposed in July after a separate investigation into alleged failures to prevent imports of goods made with forced labour. Vietnam had earlier faced 20 percent tariffs after President Donald Trump's "Liberation Day" tariff announcement, but those were struck down by the Supreme Court. Many economists have said the objective of the administration is to reimpose at least the same level of tariffs that the Supreme Court abolished, Reuters reported.
Why Tesla and Samsung Object
Tesla, the electric car maker, urged the US Trade Representative to "take into account the supply chain needs of American manufacturers" in comments sent on July 2. Some advanced components and precision manufacturing equipment cannot be sourced domestically despite major investments in US production, the company said.
Samsung's US unit made a similar argument, noting that Vietnam produces a significant share of the smartphones and network equipment it sells in the American market. The South Korean company is Vietnam's largest foreign investor, having invested about 25 billion dollars there, according to Reuters.
Retail groups and trade associations representing industries with extensive manufacturing operations in Vietnam also opposed additional tariffs, including footwear, apparel and makers of consumer goods such as bicycles and video game consoles. Their argument, in essence, is that new duties would punish manufacturers and importers — and ultimately American shoppers — rather than the pirates and counterfeiters at the heart of the complaint.
The Other Side: Calls for Penalties
Not everyone wants Washington to hold back. Industry groups representing US producers of steel, seafood, plywood, solar panels and wood products accused Vietnam of unfair practices and called for new tariffs, according to the submissions reviewed by Reuters.
Copyright holders pressed a different case: stronger enforcement, not necessarily tariffs. The Business Software Alliance, whose members include Microsoft, Oracle and IBM, said about three-quarters of software installed on personal computers in Vietnam was unlicensed, citing a 2017 survey. It criticised what it described as "inadequate enforcement," despite repeated commitments by Vietnam to address the issue.
The Motion Picture Association said Vietnam was a major hub for online piracy, hosting websites distributing stolen film and television content that attracted more than 12.5 billion visits worldwide last year. It called for stronger enforcement and improved market access for legitimate streaming services.
According to trade-law summaries of the investigation notice, the US Trade Representative listed five concerns: ineffective action against online piracy, insufficient enforcement against counterfeiting, gaps in customs controls, weak enforcement against unlicensed software, and no criminal measures for cable and satellite signal theft.
Vietnam's Rising Trade Surplus
The dispute is unfolding against a dramatic shift in the US-Vietnam trade balance. Vietnam's exports to the US surged 42 percent in the first eight months of this year compared with the same period in 2025, making it the US trading partner with the largest goods surplus — ahead of China and Mexico, Reuters reported. At the end of 2025, Vietnam ranked only fourth.
That surge is part of why the case carries weight far beyond intellectual property. Vietnam has long been accused of being a transit hub for Chinese goods, and the question of whether new tariffs would be general or targeted at specific sectors will shape how much pain falls on American importers, retailers and consumers.
What This Means
The filings lay bare a tension at the heart of the administration's trade policy. On one side are domestic producers and copyright holders who say Vietnam has failed for years to protect American intellectual property, and who want Washington to use tariffs as leverage. On the other are some of America's most prominent manufacturers and retailers, who say their supply chains cannot simply be rerouted — and that new duties would raise costs for American companies and households.
Tesla's argument is particularly pointed: even heavy investment in US manufacturing has not closed every sourcing gap for advanced components and precision equipment. Samsung's case is similar — a quarter-century of investment has made Vietnam central to the phones and network gear it sells in America. For both companies, tariffs on Vietnam would function less as a penalty on Hanoi than as a tax on their own operations.
The copyright holders' submissions add a complication. Their grievances — pirated software, counterfeit goods, streaming piracy — are real and documented, but tariffs on physical goods are a blunt instrument for policing digital infringement. That is why groups like the Business Software Alliance and the Motion Picture Association are pressing for enforcement commitments rather than duties.
What Happens Next
All eyes are now on November 29, when the administration is due to conclude the probe. Ambassador Jamieson Greer, the US Trade Representative, will decide on any remedies after consulting the president, according to trade-law summaries of the process. Any response, and its product scope, remains undecided.
Vietnam, for its part, has hired outside help: its Intellectual Property Office appointed the law firm Brownstein LLP, with YKVN LLP as its local partner, to assist the government, according to trade-law reporting. Hanoi has publicly urged Washington to conduct the investigations objectively.
If the administration opts for tariffs, the next fight will be over their scope — general duties that hit everything from shoes to smartphones, or targeted measures aimed at specific sectors. If it opts for a negotiated outcome, the test will be whether Vietnam delivers concrete, verifiable commitments on piracy and counterfeiting. Either way, the decision will land just weeks before the end of the year, with American businesses and consumers watching closely.
Post a Comment