US tariffs on Vietnam: Why Tesla and Samsung are opposing fresh US duties

US tariffs on Vietnam: Tesla and Samsung have opposed additional US tariffs on goods imported from Vietnam, as the Trump administration approaches the November 29 deadline to conclude its investigation into the Southeast Asian country's intellectual property (IP) protection and enforcement practices.

Businesses and industry groups are divided over whether Washington should impose fresh trade penalties on Vietnam. While companies with significant manufacturing operations in the country have urged the US government against additional tariffs, steel, solar, seafood and wood industry groups have called for stronger trade measures.

The submissions were made to the US government as part of a trade investigation launched in May. The probe focuses on alleged violations of intellectual property rights in Vietnam.

Why Tesla and Samsung are opposing additional tariffs

Electric vehicle maker Tesla has urged the US Trade Representative (USTR) to consider the supply chain requirements of American manufacturers before proposing additional tariffs.

In comments submitted on July 2, Tesla said certain advanced components and precision manufacturing equipment cannot be sourced domestically, despite significant investments in US manufacturing facilities.

Samsung's US unit has also opposed additional tariffs, highlighting Vietnam's importance in manufacturing smartphones and network equipment for the American market.

South Korean electronics giant Samsung is Vietnam's largest foreign investor, with investments of around $25 billion in the country.

Retail groups and trade associations representing companies in the footwear, apparel and consumer goods sectors have also raised concerns about additional tariffs. These industries have extensive manufacturing operations in Vietnam, including production of bicycles and video game consoles.

Why is the US investigating Vietnam?

The Trump administration launched the investigation in May over allegations of intellectual property violations and what it described as inadequate protection and enforcement of IP rights in Vietnam.

The US designated Vietnam as a "priority foreign country", making it the first jurisdiction in 13 years to be placed in the most serious category of its intellectual property watchlist.

Washington has accused Vietnam of "a persistent failure to resolve long-standing concerns about IP protection and enforcement."

A separate US investigation into alleged excessive industrial capacity in Vietnam is also underway. Vietnam has urged Washington to conduct both investigations objectively.

It remains unclear whether any new tariffs arising from the intellectual property investigation would apply to all Vietnamese imports or target specific sectors.

Vietnam already faces 12.5% US tariff

The US currently imposes a general tariff of 12.5 per cent on Vietnamese goods. The duty was introduced in July following an investigation into alleged failures to prevent imports of products manufactured using forced labour.

Vietnam had earlier faced 20 per cent tariffs following US President Donald Trump's 'Liberation Day' trade measures. However, those tariffs were subsequently struck down by the US Supreme Court.

Economists have said the Trump administration's objective is to restore at least the same level of tariffs that were removed following the court's decision.

US industry groups demand fresh tariffs

While Tesla, Samsung and several retail groups have opposed additional tariffs, a number of US industry associations have called for penalties against Vietnamese imports.

Industry groups representing American steel, seafood, plywood, solar panel and wood product manufacturers have accused Vietnam of unfair trade practices and urged Washington to take action.

Intellectual property rights holders have also asked the US government to secure concrete commitments from Vietnam to tackle widespread piracy.

The Business Software Alliance, whose members include Microsoft, Oracle and IBM, has raised concerns over the use of unlicensed software in Vietnam. Citing a 2017 survey, the group said around three-quarters of software installed on personal computers in the country was unlicensed.

It criticised what it described as "inadequate enforcement", despite repeated commitments by Vietnam to address the issue.

The Motion Picture Association has also identified Vietnam as a major hub for online piracy. It said websites distributing unauthorised film and television content hosted in the country attracted more than 12.5 billion visits worldwide last year.

The association has called for stronger enforcement of intellectual property laws and better market access for legitimate streaming services.

Vietnam's exports to US surge 42 per cent

The tariff debate comes as Vietnam's exports to the US have increased sharply.

Vietnamese exports to the American market rose 42 per cent in the first eight months of this year compared with the same period in 2025.

The increase has made Vietnam the US trading partner with the largest goods trade surplus, ahead of China and Mexico. At the end of 2025, Vietnam ranked fourth on the list.

With the November 29 deadline approaching, the US government's decision on the investigation could have implications for businesses that depend on Vietnamese manufacturing and supply chains, as well as American industries seeking greater protection from imports.