Why Tesla, Samsung are pushing back against new US tariffs on Vietnam

Vietnamese goods currently face a 12.5 per cent US tariff, imposed in July over concerns that the country failed to stop imports of goods made using forced labour

US businesses are divided over fresh tariffs on goods from Vietnam. While companies such as Tesla and Samsung oppose additional duties, several American industry groups want the government to impose penalties on Vietnam, news agency Reuters reported.

 

This comes as the Donald Trump administration approaches a November 29 deadline to complete an investigation into Vietnam's alleged intellectual property (IP) violations. The investigation, launched in May this year, could lead to new trade measures against the country.

 

According to submissions made to the US government and reviewed by Reuters, companies with manufacturing operations in Vietnam have warned that additional tariffs could disrupt their supply chains. On the other hand, groups representing American producers of steel, seafood, solar panels and other products have accused Vietnam of unfair trade practices and sought stronger action.

 

 

US tariffs on Vietnam: What is the dispute about?

 

The US Trade Representative (USTR) launched a trade investigation in May into Vietnam's alleged failure to protect intellectual property rights. Washington has accused the country of "a persistent failure to resolve long-standing concerns about IP protection and enforcement".

 

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

 

A separate US investigation into Vietnam's alleged excess manufacturing capacity is also underway. Hanoi has urged Washington to ensure that its investigations are conducted objectively, Reuters reported.

 

Currently, Vietnamese goods face a general 12.5 per cent US tariff, imposed in July following an investigation into alleged failures to prevent imports of goods produced using forced labour.

 

Vietnam had earlier faced 20 per cent tariffs announced by Trump on what he called "Liberation Day". These duties were later struck down by the US Supreme Court. According to Reuters, economists believe the administration may seek to restore at least the same level of tariffs that were overturned.

 

Why Tesla and Samsung are opposing fresh tariffs

 

Tesla and Samsung have raised concerns that additional duties could make it harder for American companies to source products and components from Vietnam, affecting manufacturing operations in the US.

 

Tesla, in its submission to the USTR on July 2, asked the administration to "take into account the supply chain needs of American manufacturers".

 

The electric vehicle maker said that certain advanced components and precision manufacturing equipment were not available from domestic suppliers, despite significant investments in manufacturing within the US. This makes imports from countries such as Vietnam important for its operations.

 

Samsung's US subsidiary has expressed similar concerns. Vietnam accounts for a substantial share of the South Korean company's smartphone and network equipment production for the American market.

 

Samsung is also Vietnam's largest foreign investor, with investments of around $25 billion in the country, according to Reuters. Additional tariffs could affect its manufacturing operations and the movement of products from Vietnam to the US.

 

Other American businesses have also opposed fresh duties. Retail groups and trade associations representing companies in the footwear, apparel, bicycle and video game console industries have warned against additional tariffs because of their manufacturing links with Vietnam, the news report said.

 

US industry groups seek action against Vietnam

 

While companies such as Tesla and Samsung want Washington to avoid additional duties, several US industry groups have called for tougher action against Vietnam.

 

Trade associations representing American steel, seafood, plywood, solar panel and wood product manufacturers have accused Vietnam of following unfair trade practices. They have urged the US government to impose new tariffs to protect domestic producers.

 

Groups representing software, film and music companies have separately raised concerns about intellectual property protection and online piracy in Vietnam, the news report said.

 

The Business Software Alliance, which represents companies such as Microsoft, Oracle and IBM, has criticised Vietnam's enforcement of intellectual property laws. Citing a 2017 survey, the organisation said around three-fourths of the software installed on personal computers in Vietnam was unlicensed.

 

It also described Vietnam's enforcement efforts as "inadequate", despite repeated commitments by the country's government to address the issue.

 

The Motion Picture Association has also alleged that Vietnam is a major centre for online piracy. It said websites hosted in the country distribute illegally copied films and television programmes and attracted more than 12.5 billion visits worldwide last year.

 

The association has called for stronger action against piracy and better market access for legitimate streaming services.

 

Vietnam's growing trade ties with the US

 

The disagreement comes as Vietnam's exports to the US continue to rise. Its shipments to the American market increased 42 per cent in the first eight months of 2026 compared with the same period last year, making it the US' largest trading partner by goods surplus, ahead of China and Mexico, Reuters reported.

 

Vietnam was the US' fourth-largest trading partner by goods surplus at the end of 2025.

 

The growing trade relationship has made Vietnam an important manufacturing and sourcing base for American businesses. Any additional tariffs could therefore affect companies that depend on Vietnamese factories, while US producers are seeking protection against what they describe as unfair competition.