Tesla and Samsung Fight New Vietnam Tariffs as USTR Probe Nears Nov. 29

Vietnam's exports to the US surged 42% in the first eight months of this year, and that pace now sits squarely in Washington's crosshairs. The US Trade Representative must wrap up a Section 301 probe into Vietnam's intellectual property practices by Nov. 29, and the outcome could add new tariffs to a trade lane that has already absorbed a 12.5% general levy imposed in July after a forced-labor investigation.

The probe, opened May 29 under Section 301 of the Trade Act, carries unusual weight. Washington has tagged Vietnam a "priority foreign country" — the first jurisdiction placed in the most serious US watchlist category in 13 years — citing "a persistent failure to resolve long-standing concerns about IP protection and enforcement." A separate inquiry into alleged excess capacity is running in parallel, and Hanoi has asked the US to conduct both investigations objectively.

What does this change for shippers and manufacturers?

Submissions to the USTR show US business split roughly three ways. Tesla told the agency in comments dated July 2 that it should "take into account the supply chain needs of American manufacturers," arguing some advanced components and precision manufacturing equipment simply can't be sourced domestically despite heavy investment in US production. Samsung's US unit made a similar case, noting Vietnam supplies a large share of the smartphones and network equipment it sells in the US. Samsung is also Vietnam's biggest foreign investor, with roughly $25 billion committed there.

Retail groups and trade associations whose members manufacture heavily in Vietnam — footwear, apparel, bicycles, video game consoles — lined up against new duties. On the other side, US steel, seafood, plywood, solar panel and wood producers alleged unfair practices and pressed for fresh tariffs.

Copyright holders want enforcement, not necessarily duties. The Business Software Alliance, whose members include Microsoft, Oracle and IBM, said about three-quarters of software installed on PCs in Vietnam was unlicensed, citing a 2017 survey, and criticized what it called "inadequate enforcement" despite repeated Vietnamese commitments. The Motion Picture Association called Vietnam a major hub for online piracy, saying sites distributing stolen film and TV content drew more than 12.5 billion visits worldwide last year, and sought better market access for legitimate streaming services.

The tariff math already on the books

Whether any IP-related duties would be broad or sector-specific remains unclear. Context matters here: the US already applies a 12.5% general tariff on Vietnamese goods. Vietnam was also hit with 20% tariffs after Trump's "Liberation Day" — a move the Supreme Court later struck down. Many economists read the administration's aim as restoring at least the tariff levels the court voided.

Vietnam has long been accused of serving as a transit point for Chinese goods, which explains the enforcement pressure. The trade numbers explain the urgency. The 42% export jump has lifted Vietnam above China and Mexico as the US trading partner with the largest goods surplus; at the end of 2025 it ranked fourth.

Who loses first?

For importers and forwarders, the Nov. 29 decision is the next catalyst. Sector-specific duties would hit consumer-goods and electronics supply chains hardest — think smartphones, apparel and footwear routed through Vietnamese factories. A broad tariff would spread cost pressure across all importers already absorbing the 12.5% levy, effectively doubling the border tax burden.

The split among US industries also gives the USTR room to narrow any action, which could soften the blow to Vietnamese exporters and the American manufacturers that depend on them. A carve-out for electronics, for instance, would protect Samsung's and Tesla's supply chains while letting Washington claim an enforcement win.

The likely landing zone: targeted duties plus enforcement commitments from Hanoi, rather than a blanket levy. But with the surplus at record levels and the court-voided tariffs still unreplaced, nobody should bet the warehouse on restraint.