Trump targets Vietnam for tariffs, citing counterfeits

Vietnam is facing a massive increase in tariffs on US imports once a 90-day pause by the Trump administration, as it faces accusations that it is a major world hub for counterfeit goods and a source of digital piracy.

The US has threatened to hike tariffs on Vietnamese goods to 46% from July, prompting the Southeast Asian country's government to increase inspections at its borders of luxury items, electronic devices, and other goods, including personal care products and toys.

According to a Reuters report, the crackdown is focusing on brands like Prada, Gucci, Google, Samsung, Mattel, Lego, Procter & Gamble, and Johnson & Johnson.

The US is far and away Vietnam's biggest export market, with a trade surplus estimated to be around  $3.8bn in the first four months of 2025.

According to the US Trade Representative's recently published Special 301 report on countries which are failing to provide adequate intellectual property protection and enforcement, Vietnam is on the US 'watch list' because – as more brands have shifted production from China to Southeast Asia – it has become "more prominent" as a manufacturer of counterfeit products and has high levels of online piracy.

It also cites a recent study by OECD and EUIPO which found that Vietnam, along with China, India, Indonesia, Pakistan, and the Philippines, is a leading source of falsified medicines distributed globally.

While welcoming efforts by Vietnam to step up n criminal enforcement and border measures, with some rights holders reporting an increase in the frequency and volume of seizures of counterfeit goods by customs, "there has been little or no progress on the range of serious concerns that remain regarding other IP protection and enforcement issues."

In 2025, Vietnam underwent a significant reorganisation of its government, which included the restructuring of the Market Surveillance Agency (MSA), according to USTR.

"Most enforcement work by the MSA has been placed on hold, and stakeholders raise concerns that the results of this reorganisation will make it harder to conduct raids against counterfeit manufacturing facilities."