How America's new plan to cut China's supply chain for Apple, Google, Samsung and other technology companies has worried Vietnam
The United States reportedly has another plan to cut China's hardware and components supply chain of Apple, Google, Samsung, Meta and other technology companies. According to a report in Reuters, America is urging Vietnam to reduce Chinese technology in devices assembled in the country and exported to America. Vietnam, a hub for tech giants like Apple and Samsung, relies heavily on Chinese components, with Meta and Google also producing goods like VR headsets and smartphones there.
Vietnam has held meetings with local businesses to increase the use of Vietnamese parts, with firms expressing willingness but noting the need for time and technology, one source told Reuters.
Trump Tariffs: 46% tariff threat and ...
The Trump administration has threatened 46% tariffs, which could disrupt Vietnam's export-driven economy. One source said that Vietnam was asked to "reduce its dependency on Chinese high-tech" to restructure supply chains and lessen US reliance on Chinese components. Another source highlighted the US goal of accelerating decoupling from Chinese tech while boosting Vietnam's industrial capacity, citing VR devices as an example.
With a US-imposed tariff deadline of July 8 looming, the scope and timing of a potential deal reportedly remain uncertain. Sources emphasized that reducing Chinese high-tech content in exports is a US priority. Last year, China exported $44 billion in tech goods to Vietnam, 30% of its total exports there, while Vietnam shipped $33 billion in tech goods to the US, per Vietnam's customs data.
The US also wants Vietnam to address Chinese goods mislabeled as "Made in Vietnam" to evade higher duties. Vietnam's trade ministry noted progress in recent Washington talks but said key issues remain unresolved.
What is Vietnam's big worry
Vietnam's Communist Party chief, To Lam, may meet President Trump in late June, though no date is confirmed, sources told Reuters. Local companies have shown willingness to adapt but warned that rapid changes could "destroy business," one source said. Industry experts note that Vietnam's supply chain lags China's by 15–20 years but is progressing in sectors like electronics. Abrupt shifts could strain Vietnam's ties with China, a key investor and also lead to security concerns.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
22 minutes ago
- Hindustan Times
Israel, Iran trade strikes for fifth day straight; Trump cuts short G7 trip
The conflict between Iran and Israel has entered its fifth day with both countries continuing relentless strikes. Israel on Tuesday attacked the headquarters of the state television broadcaster in Iran, videos of which are in wide circulation on social media. United States President Donald Trump cut short his trip to the Group of Seven (G7) countries summit in Canada by a day due to escalating tensions in the Middle East. He also posted on his social media platform Truth Social that 'everyone should evacuate Tehran' after Israel vowed to launch a massive strike against Iran. Also read: Israel, US, and China issue Tehran evacuation orders as fear of war grows Trump reiterated that Iran should have signed the nuclear deal with the US which has now hit a roadblock due to the ongoing conflict. Track live updates of Iran-Israel conflict here. With agency inputs.
Hindustan Times
22 minutes ago
- Hindustan Times
'Same old game, wrong guy': US Senator warns Iran against testing Trump
In a pointed X post that underscored the rising tensions in the Middle East, Senator Lindsey Graham delivered a stark warning to Iran while extending his full support to US President Donald Trump's handling of international conflicts. Graham's message centred around a sharp rebuke of Iran's behaviour, saying 'Iran played the same old game with the wrong guy.' The Senator's post was about President Donald Trump. He also praised President Trump's efforts to pursue diplomatic solutions both in Ukraine and Iran, but said that peace requires cooperation-- and that Iran has chosen defiance over dialogue. 'No one can say that President @realDonaldTrump has not tried to seek peace regarding Ukraine-Russia and Israel-Iran. He has gone the extra mile, and I appreciate that. However, you have to have willing partners to make peace," Graham wrote on X. This comes after President Trump on Monday warned Iran that it should have signed the nuclear deal, suggesting that 'everyone' should evacuate Tehran amid rising tensions with Israel. "Iran should have signed the 'deal' I told them to sign. What a shame, and a waste of human life. Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!" Trump wrote on Truth Social. Meanwhile, White House press secretary Karoline Leavitt stated on Monday that the US President would depart from the G7 summit a day earlier, due to escalating tensions in the Middle East. On the other hand, Fox News reported that Trump has requested that the National Security Council be prepared in the situation room upon his early arrival from the G7 summit in Canada. Israel and Iran exchanged fire for the fourth consecutive day on Monday, stoking fears of an all-out war. Both nations fired several waves of drones and missiles over the last 24 hours. Since Friday, 224 people have been killed in Iran, according to the government, which said most of the casualties were civilians. Iranian attacks killed 24 people in Israel, according to the Israeli government press office, and injured 592. The tensions between the two bitter enemies escalated after Israel launched a major attack Friday with strikes in the Iranian capital of Tehran and elsewhere, killing senior military officials, nuclear scientists, and destroying critical infrastructure.
Time of India
23 minutes ago
- Time of India
India Wants US' Word: No More Tariff Post-BTA
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Epaper Tired of too many ads? Remove Ads India wants an assurance from the US that no additional tariffs will be imposed by the Donald Trump administration once the bilateral trade agreement (BTA) is finalised, said people familiar with the matter. The deal is in the final stages of negotiation and both sides are hopeful of reaching accord quickly. India has sought concessions for labour-intensive sectors such as leather and textiles. 'We have put everything on the table,' said one of the persons, adding that India wants stability in tariffs once a deal is rolled agreements typically include renegotiation clauses, or compensation from the partner effecting a tariff increase. India would like the pact to provide for such a mechanism. 'This would ensure the agreement is ringfenced from prospective changes,' said another US President on April 2 announced a reciprocal tariff of 26% on goods imports from India as part of its trade levies all over the world. These tariffs were paused for 90 days until July 9. However, the baseline tariff of 10% remains in force. India and the US are looking to finalise the BTA ahead of the assurance from Washington is required to ensure tariffs negotiated within the framework of the trade deal remain ringfenced from any changes effected later by the US, said a third official detailing India's is also Trump's mercurial experts are agreed on the need for such a clause. 'The BTA should be timebound and not in perpetuity,' said an expert on trade issues. 'India must insist on a clawback provision — that it will withdraw benefits if the US raises tariffs or goes back on any of its commitments.'Officials said Washington has to find a way to reduce tariffs as New Delhi has sought concessions for sectors such as textiles and leather, as mentioned Trump administration currently requires approval from the US Congress to lower levy below most favoured nation (MFN) rates, but it does have the authority to scrap reciprocal tariffs.'We want preferential and sustained trade advantages and have left it to the US to decide the route it takes to reduce its tariff barriers—whether through the Trade Promotion Authority or by seeking Congressional approval,' said one of the officials cited government is also monitoring the impact of the 50% tariffs on steel and aluminium and the 25% tariffs on auto. While the auto components sector doesn't expect a big dent for now, there may be an impact if the tariffs to the official quoted, India will pursue a concession, if others get sides have had several rounds of discussions on the proposed trade deal and are hopeful of concluding at least an early harvest deal. 'We are working on the early tranche, and there is a date (July 9), before which we would like to conclude this. The progress is good,' commerce secretary Sunil Barthwal said on Monday.A US trade team is in India last week to firm up the has made it clear that any meaningful expansion in bilateral trade will require a significant reduction in US tariffs. Both sides aim to more than double such trade to $500 billion by a Delhi-based trade expert cautioned, 'India should rethink its proposed BTA with the US. The US has a history of incomplete trade deals, such as the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership. It has retracted its WTO commitments also. Moreover, the future of the Indo-Pacific Economic Framework for Prosperity hangs in the balance with the US-China trade deal.'
