The tensions from the U.S.-China trade war in 2018 saw American companies moving operations to Vietnam to evade tariffs. However, President Trump's administration has now targeted Vietnam with significant tariffs, asserting a $124 billion trade deficit and accusations of unfair trade practices, such as tax advantages for exporters and intellectual property theft. Despite these challenges, American firms are reluctant to leave Vietnam, as some manufacturers increase production to exploit temporary advantages amid ongoing trade tensions with China.
American firms have enjoyed the benefits of cheaper Vietnamese manufacturing and calmer geopolitics. That changed in April when Mr. Trump declared a 46 percent tariff on goods coming from Vietnam.
Trump administration hard-liners like Peter Navarro have made Vietnam into a punching bag, accusing it of being a waypoint for Chinese-made goods to avoid steep tariffs.
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