The Trump administration intends to impose a 46% tariff on Vietnamese exports due to concerns about counterfeit goods. The Asian nation’s government has increased the inspection of imported fakes in a bid to avoid the tariffs.

While the final decision on tariffs will be made in July, many nations are already negotiating with the United States and making moves to avoid punitive duties. Vietnam’s responsibility is to crack down on counterfeit goods to ease negotiations with Washington.

US tariff threat looms over Vietnam

Vietnam is increasing its efforts to curb the distribution of counterfeit goods and digital piracy within the country after the Trump administration accused Vietnam of being a major hub for intellectual property violations. The United States has threatened to impose tariffs of up to 46% on Vietnamese exports unless significant changes are made.

According to internal government documents reviewed by Reuters, the crackdown includes an increase in border inspections of imported goods that are suspected to be counterfeit. These inspections target luxury items from brands like Prada and Gucci (Kering), electronic devices from Google and Samsung, and toys from Mattel and Lego.

Everyday consumer products, including shampoos and razors from Procter & Gamble and Johnson & Johnson, are also being closely monitored.

Vietnam has also begun targeting the unauthorized use of software. This is a form of digital piracy that has drawn criticism from US trade groups.

On April 14, Vietnam’s Ministry of Culture warned a local company, whose name is withheld, over the use of pirated software following a complaint by the Business Software Alliance (BSA). The BSA represents major software companies like Microsoft, Oracle, and Adobe.

According to Reuters, a source stated that dozens of similar letters have been sent to Vietnamese companies since the beginning of April.

Trade negotiations between the US and Vietnam began informally before Trump’s global trade policy became official on April 2. Protecting intellectual property, preventing illegal transshipment and lowering barriers to US goods are vital to the ongoing trade negotiations between the two countries.

In late April, Prime Minister Pham Minh Chinh instructed government agencies to tighten their enforcement against trade fraud, especially concerning the origin of goods and counterfeit products.

With this crackdown, Vietnam hopes to avoid US tariffs, but it may strain its relationship with China, as it is the primary source of many counterfeit imports across its borders.

Counterfeit goods are linked to China

Despite the government’s newly launched initiatives, counterfeit goods remain easy to find in Vietnam. Reuters reportedly observed fake luxury products openly sold at Saigon Square Shopping Mall in Ho Chi Minh City last week.

The US Trade Representative (USTR) previously listed the mall among its “notorious markets for counterfeiting.” The mall’s website openly advertises imitation goods at bargain prices.

“They are not authentic and are made in China,” one vendor said about the Prada items in her stall, although she later admitted that some counterfeit belts were produced locally in Vietnam.

This isn’t to say the measures have been unsuccessful. The USTR removed a border market from its January 2025 watchlist due to the crackdown, but concerns remain about the online sale of counterfeit goods.

According to a USTR report from April, the Vietnamese platform called Shopee is a major player in the digital counterfeit trade.

The same report also noted that the manufacturing of these counterfeit goods has shifted from China to Vietnam.

Reuters reportedly reviewed a draft law proposing the establishment of specialized courts dedicated to intellectual property enforcement and bringing Vietnam’s legal system up to code with global standards. The law is expected to pass in June.

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