US Examines China-Affiliated Units in Vietnam Amid Rising Tariff Risks
US customs agents have conducted random checks at China-affiliated factories in Vietnam, as per sources acquainted with the situation, heightening worries that the White House might soon seek to impose additional tariffs on the Southeast Asian country.
Inspectors reviewed documents, sources of raw materials, and production methods to assess the value added prior to exporting to the US, in addition to potential violations of software intellectual property, according to individuals who requested anonymity due to ongoing sensitive trade discussions between the nations.
Although the inspections have heightened worries that the US will expand its tariff system on Vietnam, it has not yet presented any substantial proof of Chinese products illegally passing through the nation, the sources indicated.
While the US persists in urging Vietnam on matters of intellectual property, industrial overcapacity, and trade fraud, President To Lam's administration has aimed to demonstrate its commitment to addressing these challenges throughout its economy, highlighted by the notable confiscation of 50,000 pairs of counterfeit Nikes.
The two parties have been in discussions for several months to complete the trade framework agreement they established in October. The ongoing negotiations have been stressful and quite challenging, according to the sources, as there is a lack of consensus on transshipment and various non-tariff barriers.
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The quest for illegal Chinese products — either entirely unaltered and marked Made in Vietnam or with minimal enhancements — is central to one of the key charges made against Hanoi by Washington, as President Donald Trump aims to create a tariff barrier around the US economy.
“An entirely illegal shipment occurs where it is sent to Vietnam and labeled with a Made-in-Vietnam sticker,” said US Trade Representative Jamieson Greer earlier this month, reiterating the commonly made allegation.
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Vietnam was one of 60 economies affected by new US tariffs on Friday, as the US claimed it had not done enough to stop forced labor in its supply chains.
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Vietnam’s foreign ministry stated that the decision does not "completely represent the reality and Vietnam’s efforts in combating, minimizing, and eradicating forced labor, which includes prohibiting the import of goods produced with forced labor."