USTR Launches Section 301 Investigation Into Vietnam IP Practices

S. Trade Representative (USTR) has initiated a Section 301 investigation into Vietnam's intellectual property acts, policies, and practices. This action signals a potential precursor to tariff implementation, following the administration's pattern of using such investigations to justify trade restrictions. Vietnam has become a critical sourcing destination for supply chains seeking alternatives to China, particularly in electronics, apparel, and consumer goods, making any trade barrier consequential for global manufacturers and retailers.

For supply chain professionals, this development introduces structural uncertainty into Vietnam-sourcing strategies. Section 301 investigations typically take 6-12 months and often result in targeted tariffs on specific product categories. Companies with significant Vietnam exposure—whether direct manufacturing facilities or sourcing relationships—should immediately audit their Vietnamese supply base and consider contingency sourcing plans. The investigation focuses on IP practices, suggesting potential tariffs could target high-value manufactured goods rather than raw materials.

S. trade policy patterns and signals heightened scrutiny of supply chain concentration in Southeast Asia. Organizations should prepare scenario analyses for 10-25% tariff implementations on Vietnamese imports and develop diversification strategies across Mexico, India, or Southeast Asian alternatives to mitigate single-country risk exposure.