The United States has intensified pressure on Vietnam to reduce the use of Chinese technology in the electronic devices assembled in the country before being exported to the U.S. market. This measure is part of ongoing tariff negotiations between the two countries and aims to curb the presence of components and technology from China in products sold in the U.S.
The background of this strategy aims to accelerate the technological decoupling of the U.S. from China, a policy driven in recent years by national security concerns and geopolitical competition. According to sources consulted by Reuters, the U.S. administration is conditioning the exemption or reduction of tariffs on Vietnam limiting the incorporation of Chinese technology in the products it subsequently exports to North America.
Impact on Major Tech Companies and Tariff Threats
The decision particularly affects American companies such as Apple, Meta, Google, and Samsung, which have shifted part of their production chain to Vietnam to reduce their direct dependence on Chinese factories. This move has also allowed them to benefit from lower tariff costs by exporting their devices from Vietnam instead of from China.
However, the Trump administration had already warned Vietnam about the possibility of imposing a 46% tariff on the export of products with Chinese components to the U.S., a measure that, if implemented, would significantly slow down the production and export of tech devices like smartphones and virtual reality glasses from brands such as Apple, Samsung, Google, or Meta.
So far, none of these companies have responded to inquiries from Reuters on the matter. Meanwhile, the U.S. government has set July 8 as the deadline for the new tariffs to take effect, although specific targets regarding the maximum percentage of allowed Chinese content or whether different tariff rates will apply based on the level of integration of Chinese components have not been specified.
Growing Technology Exchange Figures Between Vietnam, China, and the U.S.
The technology trade between these countries is significant. In 2024, China exported electronic components, computers, and phones to Vietnam valued at around $44 billion, which represents approximately 30% of Vietnam’s total technology imports. Conversely, Vietnam exported technology goods worth $33 billion to the U.S., accounting for 28% of Vietnam’s exports to the American market. Both trade flows continue to rise, driven by the reconfiguration of global supply chains amid trade tensions between Washington and Beijing.
A New Balance for the Global Tech Industry
The new scenario highlights Vietnam’s growing prominence as a technological assembly hub and its strategic role in the trade and technology battle between the U.S. and China. In the medium term, the decisions Vietnam makes in response to this pressure will be crucial for the stability and development of its tech industry, as well as for the large multinationals that depend on its factories to maintain global competitiveness.
The date of July 8 will mark a milestone for the industry, depending on whether agreements can be reached that allow Vietnam to maintain its appeal as a tech hub while complying with the new U.S. demands for decoupling from Chinese technology.
References: Reuters and el chapuzas informatico