Summary of the developments of the United States' Section 301 Investigations concerning Vietnam

Since early March 2026, the United States has initiated three investigations under Section 301 of the Trade Act of 1974 concerning Vietnam, including investigations into industrial overcapacity, forced labor, and the protection and enforcement of intellectual property rights. All three investigations have been initiated pursuant to Section 301(b), under which the United States examines whether the acts, policies, and practices of the trading partner under investigation are “unreasonable” or “discriminatory” and “burden or restrict” U.S. commerce. If the investigations conclude that these allegations are substantiated, the United States may impose responsive measures, including tariffs and non-tariff measures.

These investigations have been initiated in the context of the U.S. Supreme Court's ruling of 20 February 2026 that the President lacks the authority to impose reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA). Following this ruling, the Trump Administration withdrew the reciprocal tariff measures then in effect and instead relied on Section 122 of the Trade Act of 1974 to impose temporary import surcharges (effective for up to 150 days). At the same time, the Office of the United States Trade Representative (USTR) launched Section 301 investigations to establish a more durable legal basis for the subsequent imposition of tariff measures.

1. Section 301 Investigation into structural excess capacity and production in manufacturing sectors

On 11 March 2026, USTR initiated an investigation involving 16 economies, namely China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India. USTR alleged that these economies maintain production capacity far exceeding domestic consumption demand, resulting in excess production and sustained large trade surpluses in exports; adversely affecting existing production in the United States and, at the same time, hindering investment and manufacturing expansion in the country.

The notice of initiation identified 21 sectors alleged to suffer from overcapacity, including aluminum, automobiles, batteries, cement, chemicals, electronics, energy goods, glass, machine tools, machinery, non-ferrous metals, paper, plastics, processed food and beverages, robotics, satellites, semiconductors, ships, solar modules, steel, and transportation equipment. In the case of Vietnam, USTR's notice also emphasized the bilateral goods trade surplus with the United States in 2025 of USD 178 billion.

Key procedural milestones:

• 17 March 2026: Opening of the docket for submission of comments (Docket No. USTR2026-0067) and registration to testify at the hearing (Docket No. USTR-2026-0068).

• 15 April 2026: Deadline for submission of written comments and registration to testify accompanied by a summary of testimony.

• 5-8 May 2026: Public hearing before the U.S. International Trade Commission (USITC).

• Seven days after the final hearing date: Deadline for submission of post-hearing rebuttal comments.

To date, USTR has not announced the results of the investigation or any proposed measures in this case.

2. Section 301 investigation into forced labor

On 12 March 2026, USTR initiated an investigation involving 60 economies, including Vietnam, concerning their failure to adopt and effectively enforce import prohibitions on goods produced with forced labor. Following the receipt of written comments and the conduct of a public hearing, USTR issued its preliminary findings and proposed measures on 2 June 2026.

Specifically, in its preliminary determination, USTR concluded that the acts, policies, and practices of all 60 economies under investigation are "unreasonable" and "burden or restrict" U.S. commerce and therefore are actionable under Section 301(b). USTR divided the 60 investigated economies into two groups. The first group, comprising 54 economies, including Vietnam, was found to lack measures prohibiting the importation of goods produced with forced labor abroad. The remaining six economies (Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan) were placed in the second group, with USTR determining that, although they have adopted such import prohibitions, they have failed to enforce them effectively.

With respect to Vietnam, USTR acknowledged Vietnam's statement that it has adopted and is implementing measures to prevent, detect, and eliminate forced labor. However, USTR maintained that, at present, Vietnam appears not to have a legal measure prohibiting the importation of goods produced with forced labor.

Regarding the proposed response, USTR proposed imposing additional ad valorem duties on all products originating from the investigated economies, except for the products excluded under Annex A to the notice. Specifically, USTR proposed two tariff rates:

• A 10% additional duty applicable to products originating from 14 trading partners (including economies in the second group or economies in the first group that have entered into a Reciprocal Trade Agreement with the United States or are subject to a partial arrangement).

• A 12.5% additional duty applicable to products originating from the remaining 46 trading partners, including Vietnam.

In addition, USTR proposed establishing a special mechanism for textiles and apparel, under which a specified tariff-rate quota for apparel and textile products would be eligible for a preferential Section 301 tariff rate based on the proportion, by volume, of raw cotton and textile fiber inputs imported from the United States.

These constitute preliminary findings and proposed measures only and do not represent a final determination. The deadline for submitting written comments expired on 6 July 2026 (Docket No. USTR-2026-0265), while the public hearing on the proposed measures was held on 7 July 2026 before the U.S. International Trade Commission (USITC) (Docket No. USTR-2026-0266). Post-hearing rebuttal comments may be submitted within five days after the final hearing date. Accordingly, the public consultation process is currently in its final stage before USTR issues its final determination and adopts definitive measures.

3. Section 301 investigation into intellectual property protection and enforcement

On 30 April 2026, in its annual Special 301 Report, USTR designated Vietnam as a Priority Foreign Country (PFC), the highest level of concern with respect to intellectual property rights (IPR). This marked the first time that Vietnam had been designated as a PFC and the first time in more than a decade that USTR had placed a country in this category. Pursuant to Section 302 of the Trade Act of 1974, USTR is required to determine, within 30 days of a PFC designation, whether to initiate an investigation under Section 301.

On 29 May 2026, USTR officially announced the initiation of a Section 301 investigation exclusively concerning Vietnam to determine whether Vietnam's failure to resolve longstanding concerns regarding the protection and enforcement of intellectual property rights (IPR) constitutes an unreasonable or discriminatory act, policy, or practice that burdens or restricts U.S. commerce. The notice of initiation was published in the Federal Register on 3 June 2026 (Docket No. USTR-2026-0364).

The concerns identified by USTR include:

• Enforcement against online copyright infringement.

• Measures to combat counterfeit goods in both traditional commercial channels and e-commerce.

• Border enforcement to prevent the importation and exportation of counterfeit goods.

• Enforcement against the use of unlicensed software.

• Criminal enforcement against cable and satellite signal piracy.

The deadline for submitting written comments expired on 2 July 2026. The notice of initiation does not provide for a public hearing in this investigation. Upon completion of the investigation, USTR will determine whether to impose responsive measures, which may include both tariff and non-tariff measures.

4. General remarks

As of 9 July 2026, the three Section 301 investigations are at different procedural stages. The forced labor investigation has completed the preliminary investigation stage and is currently undergoing the consultation process prior to the issuance of a final determination. The industrial overcapacity investigation and the intellectual property rights (IPR) investigation remain ongoing, and no preliminary findings have yet been issued.

These are three separate and independent investigations. The findings of each investigation may result in separate and independent responsive measures, including the imposition of additional tariffs or other trade measures.

As none of the investigations has been completed or resulted in a final decision regarding the measures to be imposed, businesses are advised to continue monitoring USTR's announcements in order to promptly assess potential impacts and prepare appropriate response strategies.

Detailed information on the Section 301 investigations is available on USTR's dedicated webpage at: https://ustr.gov/issue-areas/enforcement/section-301-investigations

Annex: Summary of the three Section 301 investigations concerning Vietnam

Source: Center for WTO and International Trade, Legal Department – VCCI.

• Notice of Initiation of the Section 301 Investigations into Forced Labor and Production Excess
• 2026 Special 301 Report
• Notice of Initiation of the Section 301 Investigation into Intellectual Property Rights
• Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor
• Notice of Preliminary Determination and Proposed Measures in the Section 301 Investigation into Forced Labor