U.S. Launches Surprise Inspections on Chinese Factories in Vietnam, New Tariff Risks Escalate
Claire Weston
U.S. Customs has raided Chinese-linked factories in Vietnam, scrutinizing value-added ratios and intellectual-property practices. With Vietnam now America's largest single-month trade-deficit source at $178 billion, a fresh round of tariffs is a growing risk.
What did U.S. Customs actually inspect?
Bloomberg reports that U.S. Customs and Border Protection entered Chinese-linked factories in Vietnam, reviewing documents, raw-material sourcing, and production processes.
Two goals drove the raids: assessing how much value is genuinely added before goods ship to the U.S., and probing potential software IP infringement.
This means → Washington is testing a core suspicion: are these factories truly manufacturing in Vietnam, or simply re-labeling Chinese goods as "Made in Vietnam"?
Did they find anything?
So far, no major evidence of illegal transshipment of Chinese goods through Vietnam has surfaced.
Yet U.S. Trade Representative Jamieson Greer reiterated this month that "purely illegal shipping" — slapping Vietnamese labels on Chinese products — does occur.
In plain terms = the raids haven't produced a smoking gun, but Washington's suspicion is undiminished — and pressure will only build.
Why has Vietnam become the epicenter?
Vietnam is the only country currently facing three simultaneous U.S. Section 301 investigations, covering intellectual property, industrial overcapacity, and forced labor.
Last week, Vietnam was also placed on a tariff list targeting 60 economies for insufficient action against forced labor.
The most telling number: in May this year Vietnam overtook Taiwan as America's largest single-month trade-deficit source, with a bilateral deficit of $178 billion.
This reflects a structural irony — Vietnam absorbed massive manufacturing shifts during U.S.–China decoupling, and that very success made it the next target.
Will Nike and Apple feel the impact?
Vietnam is already a core manufacturing base for U.S. brands: over half of Nike's footwear is made there, and Apple has shifted much of its non-iPhone production — AirPods, laptops — to the country.
This means → if U.S.–Vietnam tariffs escalate, the shock hits these American brands' own supply chains and cost structures, not just Vietnamese factories.
How is Vietnam responding?
On IP enforcement, Vietnam submitted a 3,581-page document to the U.S. Trade Representative's office, citing nearly 20,000 infringement cases handled between 2021 and 2025, and publicized the seizure of 50,000 counterfeit Nike shoes.
On forced-labor allegations, Vietnam's foreign ministry said the U.S. decision "failed to fully reflect Vietnam's reality."
In plain terms = Vietnam is scrambling to prove compliance, but Washington is clearly not yet convinced.
What comes next?
Laura Schwartz, senior Asia analyst at Verisk Maplecroft, notes that negotiations are difficult "precisely because the stakes for Vietnam are so high."
The two sides reached a trade framework deal last October and have been working toward a comprehensive agreement, but transshipment criteria and non-tariff barriers remain key sticking points.
This means → whether these investigations translate into actual new tariffs will be the decisive test of the U.S.–Vietnam trade trajectory — and for companies with factories in Vietnam, uncertainty has not peaked.
Content is for reference only, not financial advice.