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US Threatens Vietnam with 46% Tariffs on Tech Goods Over Chinese Components

US Threatens Vietnam with 46% Tariffs on Tech Goods Over Chinese Components

The US has urged Vietnam to reduce its reliance on Chinese components, threatening tariffs, causing concern for Apple and Google.

A major shift is underway in the global technology supply chain. To weaken China's technological grip, the US has begun directly pressuring Vietnam, a key manufacturing hub in South Asia. This could directly impact major companies that manufacture smartphones and gadgets in Vietnam, including Apple, Google, Samsung, and Meta.

The aim is to reduce America's technological dependence on China, but the implications are far-reaching. The US has explicitly stated that if Vietnam doesn't reduce its use of high-tech parts from China, its tech products could face import tariffs of up to 46%.

Vietnam: Asia's New Manufacturing Powerhouse

Vietnam has become a reliable manufacturing location for several US tech companies. Apple assembles its iPads and AirPods, Samsung its smartphones, and Google its Pixel devices in Vietnam.

However, many of the necessary components and chips for these gadgets are sourced from China. This leads the US to believe that despite the products being manufactured in Vietnam, their roots remain in China.

Up to 46% Tariff: America's Threat

The US has made it clear to Vietnam that failure to curtail the use of Chinese components could result in import tariffs of up to 46% on Vietnamese tech products entering the US after July 8, 2025.

If this tariff is implemented:

  • Vietnamese products will become more expensive in the US.
  • Exports could decline.
  • Foreign companies' confidence in Vietnam could waver.

Major Economic Blow Possible

Vietnam's economy heavily relies on the export of tech products.

  • In 2024, Vietnam exported approximately $33 billion worth of tech products to the US.
  • During the same period, China supplied Vietnam with $44 billion worth of components, accounting for roughly 30% of its total imports.

A sudden shift in this supply chain could not only halt production but also slow down Vietnam's economic growth.

Growing Concerns Among Companies: What About Product Launches?

The companies most stressed by this situation are the large corporations with production lines in Vietnam. Companies like Apple, Google, Samsung, and Meta have already planned to manufacture many of their upcoming devices in Vietnam.

If Vietnam is forced to abruptly change its supply chain:

  • New launches could be delayed for months.
  • Companies will need to find new partners and vendors.
  • Manufacturing costs could significantly increase.

This entire situation could disrupt companies' schedules and revenue models.

Vietnam Shows Positivity

The Vietnamese government has taken the US warning seriously. They have held meetings with domestic companies to discuss plans to promote domestically sourced components.

  • Companies have shown interest in this direction.
  • However, they have stated that implementing this change immediately is not feasible without advanced technology and time.

This will require significant investment, a new skilled workforce, and foreign technology transfer.

America's Real Goal: Isolating China from the Global Chain

According to analysts, the main objective of the US is not Vietnam, but to isolate China from the global supply chain.

  • The US has already imposed sanctions on several Chinese tech companies.
  • Now it is putting pressure on countries that source components from China in any form.

This strategy is part of an effort to distance the US from Chinese technology and boost the industrial capacity of its 'friendly' nations.

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