Breaking news! us officially launches section 301 investigation on vietnam, may impose high tariffs! vietnamese exporters panic

This is a direct action following the designation of Vietnam as a "Priority Foreign Country" in the Special 301 Report released on April 30, 2026. Previously, the Office of the United States Trade Representative (USTR) released the 2026 Special 301 Report. The report stated that the United States reviewed over 100 trading partners and ultimately placed 26 countries on the trade "blacklist." However, Vietnam was designated as a "Priority Foreign Country" (PFC), the most severe level, with the last country being listed under this category 13 years ago.

The United States believes that Vietnam has long failed to effectively address its behaviors, policies, and practices in intellectual property (IP) protection and enforcement, including online piracy, counterfeit goods, border enforcement, unauthorized software use, and cable/satellite signal theft. Vietnam is accused of “continuing to fail” to address long-standing U.S. concerns, causing harm to American innovators and creators.

The United States, under Section 301 of the Trade Act of 1974, is investigating whether Vietnam's acts, policies, and practices are "unreasonable or discriminatory," and whether they burden or restrict U.S. commerce.

This is already the third US Section 301 investigation Vietnam has faced since 2026.

The first two are, respectively, the Section 301 investigation into structural overcapacity in manufacturing and the Section 301 investigation related to forced labor. Both of these investigations were launched in March of this year, carried out together with multiple countries, and their results are expected to be announced before July.

This reflects the Trump administration’s overall escalation of trade pressure on Vietnam, even as Vietnam continues to negotiate a bilateral trade agreement with the United States.

This Section 301 investigation began accepting public comments on May 30, and the deadline is July 2, 2026.

If Vietnam fails to make substantive improvements, the United States may take retaliatory measures, including imposing additional tariffs, suspending trade agreements, or other restrictions. Historically, Section 301 investigations have often been used to advance negotiated settlements.

Vietnam is an important trading partner of the United States, especially in electronic products, apparel, furniture, and footwear, and it has a high degree of reliance on exports to the U.S.

If tariffs are imposed, it will increase the cost of Vietnamese goods in the U.S. market, affecting export-oriented enterprises, supply chains, and the attractiveness to foreign investment.

According to reports, the Vietnamese government has begun stepping up nationwide IP enforcement actions, including high-profile crackdowns, to demonstrate goodwill before a decision by the Office of the United States Trade Representative (USTR). But the USTR considers these measures still not "sustained and deterrent."