By Francesco Guarascio
HANOI, Nov 2 (Reuters) – Businesses are divided over whether Washington should propose new tariffs on Vietnamese goods this month, with Tesla and Samsung not in favour, while others have called for penalties, submissions to the US government show.
The Trump administration has set a November 29 deadline to conclude a trade probe launched in May over the Southeast Asian nation’s alleged intellectual property violations. It designated Vietnam as a “priority foreign country”, the first jurisdiction in 13 years to be added to the most serious US watchlist category.
The US 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.
It is not clear if any tariffs linked to IP violations would be general or sector specific. The US currently levies a general 12.5% tariff on Vietnamese goods that was imposed in July after an investigation into alleged failures to prevent imports of goods made with forced labour.
Vietnam, long accused of being a transit hub for Chinese goods, faced 20% tariffs after Trump’s “Liberation Day”, which were struck down by the Supreme Court. Many economists have said the objective of the Trump administration is to reimpose at least the same level of tariffs that the Supreme Court abolished.
Electric car maker Tesla urged the US Trade Representative to “take into account the supply chain needs of American manufacturers”. Some advanced components and precision manufacturing equipment cannot be sourced domestically despite major investments in US production, it said in comments sent on July 2.
Samsung’s US unit made a similar argument, noting Vietnam produces a significant share of Samsung’s smartphones and network equipment for the US market. The South Korean company is Vietnam’s largest foreign investor, having invested about $25 billion there.
Retail groups and trade associations representing industries with extensive manufacturing operations in Vietnam, including footwear, apparel and makers of consumer goods such as bikes or video game consoles, also opposed additional tariffs.
Vietnam’s exports to US surged 42% in the first eight months of this year compared to the same period in 2025, making it the US trading partner with the largest goods surplus ahead of China and Mexico. That compares with its position as the fourth-biggest at the end of 2025.
STEEL, SOLAR AND WOOD GROUPS ALLEGE UNFAIR PRACTICES
Industry groups representing US producers of steel, seafood, plywood, solar panels and wood products accused Vietnam of unfair practices and called for new tariffs.
Copyright holders such as software, film and music industry groups urged Washington to secure concrete commitments from Vietnam to combat widespread piracy.
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 over 12.5 billion visits worldwide last year. It called for stronger enforcement and improved market access for legitimate streaming services.
(Reporting by Francesco Guarascio; Editing by Edwina Gibbs)
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