Key Points
- The U.S. wants Vietnam to use fewer Chinese-made tech components in goods it exports to America, such as iPhones and VR headsets.
- The Trump administration is threatening massive 46% tariffs on Vietnamese goods if the country doesn’t comply.
- The move is part of a larger strategy to reduce American economic dependence on Chinese technology and manufacturing.
- Vietnam’s local suppliers are not yet advanced or cheap enough to replace China’s powerful supply chain on short notice.
The United States is exerting significant pressure on Vietnam in high-stakes trade talks, demanding that the country use fewer Chinese-made tech components in the products it assembles and exports to America. This move directly affects major manufacturing hubs for tech giants such as Apple, Samsung, Google, and Meta, all of which build devices in Vietnam, often relying on components from China.
The Trump administration is using a powerful bargaining chip: the threat of crippling 46% tariffs on Vietnamese goods. Such a tariff could devastate Vietnam’s export-driven economy.
In confidential discussions, U.S. officials told Vietnam to reduce its dependency on Chinese high-tech. The goal is twofold: to accelerate America’s economic “decoupling” from China and, simultaneously, to bolster Vietnam’s industrial strength. U.S. negotiators pointed to products like virtual reality headsets as examples of goods assembled in Vietnam that are currently too heavily reliant on Chinese technology.
Vietnam is trying to cooperate. The government has been meeting with local businesses to encourage them to supply more parts. While these firms are willing, they warn that they need much more time and better technology to compete with China’s massive and cheap supply chains. One expert estimated Vietnam is about 15-20 years behind China in this area.
Additionally, Vietnam must navigate its delicate political relationship with its powerful neighbor, China.
With a U.S.-imposed deadline of July 8th approaching, it’s unclear if a deal can be reached in time. Talks are ongoing, but negotiators say critical issues remain unresolved. To underscore the seriousness, Vietnam’s new leader, To Lam, reportedly plans to meet with President Trump to discuss the matter.