Major US businesses are divided over whether the Trump administration should impose additional tariffs on Vietnamese goods, with Tesla and Samsung warning that higher duties could disrupt supply chains, while American producers and intellectual property groups are urging Washington to take a tougher approach.
The disagreement emerged in submissions to the US government ahead of a November 29 deadline for concluding a trade investigation into Vietnam’s alleged intellectual property violations. The probe, launched in May, follows Washington’s decision to designate Vietnam a “priority foreign country”, placing it in the most serious category of the US intellectual property watchlist for the first time in 13 years.
The United States has accused Vietnam of a “persistent failure to resolve long-standing concerns about IP protection and enforcement”. A separate investigation into alleged excess industrial capacity is also underway, adding another source of trade uncertainty for the Southeast Asian economy.
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Vietnam has urged Washington to conduct its investigations objectively. It remains unclear whether any tariffs arising from the intellectual property investigation would apply broadly across Vietnamese imports or target specific industries.
The United States currently imposes a general 12.5% tariff on Vietnamese goods, introduced in July following an investigation into alleged failures to prevent imports of products made with forced labor. Vietnam had previously faced a 20% tariff under President Donald Trump’s “Liberation Day” trade measures, but the Supreme Court struck down those duties.
Many economists have argued that the administration’s objective is to restore tariffs at least at the level previously imposed before the court ruling. A new trade action linked to intellectual property enforcement could provide another route to higher duties, although the scope and legal basis of any additional measures remain unresolved.
Tesla urged the US Trade Representative to consider the supply chain requirements of American manufacturers before imposing further tariffs. In comments submitted on July 2, the electric vehicle maker said some advanced components and precision manufacturing equipment could not be sourced domestically, even after substantial investment in US production.
The company’s position highlights a constraint facing manufacturers seeking to expand domestic production: US factories remain dependent on international suppliers for certain specialized inputs. Tariffs on Vietnamese goods could therefore raise costs for American companies if affected products or components are difficult to replace with domestic alternatives.
Samsung’s US unit made a similar submission, pointing to Vietnam’s importance in manufacturing smartphones and network equipment supplied to the American market. The South Korean technology group is Vietnam’s largest foreign investor, with approximately $25 billion invested in the country.
Retail organizations and trade associations representing businesses with extensive manufacturing operations in Vietnam also opposed additional tariffs. Their members include footwear and apparel companies, as well as manufacturers of consumer products such as bicycles and video game consoles.
For these businesses, the issue extends beyond the direct cost of imported finished goods. Higher tariffs could affect established production networks, supplier relationships, and the economics of products assembled in Vietnam for US consumers.
Vietnam’s expanding trade position adds to the significance of the investigation. Its exports to the United States increased 42% in the first eight months of this year compared with the corresponding period in 2025, making it the US trading partner with the largest goods surplus, ahead of China and Mexico. At the end of 2025, Vietnam ranked fourth.
The increase has strengthened Vietnam’s importance in US import supply chains, while also bringing greater attention to the trade imbalance and the country’s role in manufacturing goods destined for the American market.
While major manufacturers and retailers have warned against additional tariffs, several US industry groups have called for penalties, arguing that Vietnamese producers benefit from unfair trade practices.
Organizations representing American steel, seafood, plywood, solar panel and wood product manufacturers accused Vietnam of unfair practices and urged the administration to impose new duties.
Intellectual property organizations have also pressed Washington to secure stronger commitments from Hanoi to tackle piracy and improve enforcement. Their submissions point to concerns involving software licensing, online distribution of copyrighted films and television programmes, and access for legitimate content providers.
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. It cited a 2017 survey and criticized what it described as inadequate enforcement, arguing that repeated Vietnamese commitments had not sufficiently addressed the problem.
The Motion Picture Association described Vietnam as a major center for online piracy. It said websites hosted in the country that distribute unauthorized films and television programmes attracted more than 12.5 billion visits worldwide last year.
The association called for stronger enforcement against piracy and improved market access for legitimate streaming services.
The competing submissions expose the difficulty facing Washington as it considers how to address intellectual property concerns without imposing costs on American companies that depend on Vietnamese manufacturing. Technology companies and retailers have an interest in maintaining access to production networks, while domestic producers and copyright holders are seeking measures they believe would protect their businesses from unfair competition and unauthorized distribution.
The outcome could also influence the broader US-Vietnam trade relationship. With Vietnam now running a larger goods surplus with the United States than China or Mexico, the administration faces pressure to address trade and intellectual property concerns while managing the potential consequences for American importers and manufacturers.
The November 29 deadline will provide a key point in the investigation, although the submissions do not establish whether Washington will impose additional tariffs, which sectors could be affected, or how any new duties would interact with the existing 12.5% levy.