U.S. Tariff Talks Push Vietnam to Reduce China Tech Reliance

Ongoing U.S.-Vietnam tariff talks on Chinese tech are intensifying as Washington pressures Hanoi to reduce its reliance on Chinese components in electronics assembled in Vietnam and exported to the United States, according to Reuters.

Vietnam serves as a major manufacturing hub for tech giants like Apple, Samsung, Meta, and Google, whose devices are often assembled using Chinese-made parts. Amid U.S. efforts to decouple from Chinese technology, Washington has asked Vietnam to scale back its use of Chinese inputs in devices such as smartphones and virtual reality headsets.

In response, Vietnam’s trade ministry has initiated consultations with local businesses to encourage the use of domestically produced components. While local firms have shown readiness to adapt, they emphasized that transitioning away from Chinese tech would require time, investment, and technological upgrades.

The U.S.-Vietnam tariff talks on Chinese tech come ahead of a looming July 8 deadline, after which the Trump administration may enforce punitive tariffs of up to 46% on Vietnam-made goods. Such a move could disrupt the export-driven model of Vietnam’s economy.

‘Restructure Global Supply Chains’

One source involved in the negotiations said the U.S. objective is to “restructure global supply chains” to reduce its dependency on Chinese high-tech exports. This includes urging Vietnam to build greater industrial self-reliance, particularly in the assembly of complex devices like VR headsets.

According to customs data, China exported approximately $44 billion worth of tech goods, such as electronic components and computers, to Vietnam in 2023, accounting for 30% of its exports to the country. Vietnam, in turn, shipped $33 billion worth of tech products to the U.S., making up 28% of its American-bound exports.

Vietnamese officials have found the U.S. demands to be “tough” and “challenging,” but the country is also taking steps to address concerns over the transhipment of Chinese goods falsely labelled as “Made in Vietnam” to exploit lower tariffs.

The trade ministry noted that a third round of negotiations held last week in Washington made some progress, although key sticking points remain. Discussions are expected to continue as the July deadline nears.

Vietnam’s Communist Party leader, To Lam, is also reportedly planning a visit to the U.S. to meet President Donald Trump, possibly by late June, though no official date has been confirmed.

While local firms are willing to cooperate, many have cautioned against abrupt changes that could disrupt their business models. Experts note that Vietnam is still 15–20 years behind China in terms of supply chain sophistication, although it is quickly narrowing the gap in sectors like electronics and textiles.

Analysts also warn that a sudden pivot away from Chinese inputs could complicate Vietnam’s diplomatic and economic ties with China, which remains both a major investor and a geopolitical concern for the Southeast Asian country.