Tesla urges US to avoid Vietnam tariffs

Tesla has requested the US government to avoid imposing new tariffs on Vietnam, citing its reliance on components and equipment that cannot yet be sourced domestically. The request comes as the US Trade Representative prepares to conclude an intellectual property investigation into Vietnam by 29 November.

Samsung and several other US-based companies have also filed against potential tariffs, noting Vietnam's role in producing goods for US consumers. On the other hand, US producers of steel, solar panels, and other goods are pushing for penalties.

The investigation, launched in May, designated Vietnam as a 'priority foreign country'—the most serious category on the US trade watchlist. However, the primary concern appears to be Vietnam's growing trade surplus with the US, which has increased by 42% year-on-year in the first eight months of 2026.

Vietnam currently faces a 12.5% tariff, imposed in July after a forced labor investigation. The US administration is likely to attempt to reinstate the higher 20% rate or even increase it through an alternative method.

Automakers, including Tesla, have restructured their supply chains to rely on Vietnam, partly due to US tariffs on China. Imposing new duties on Vietnam could penalize these companies for following that strategy, increasing costs for US consumers and reducing Tesla's margins.

Tesla has registered a subsidiary in Vietnam and is actively hiring for roles including charging project developers, signaling plans for Supercharger deployments. This move places it in direct competition with local automaker VinFast, which has a significant market share in Vietnam.