US Escalates Vietnam to ’Priority Foreign Country’ for IP Violations, EU Joins China on Watchlist

The US Trade Representative has designated Vietnam as a 'Priority Foreign Country' for intellectual property violations—the first such designation in 13 years. This move paves the way for a Section 301 trade investigation, targeting a nation that has significantly benefited from US tariffs against China.

Vietnam now occupies the highest threat tier on Washington's IP watchlist, surpassing China, India, and Russia. The Southeast Asian country's $134 billion trade surplus with the US in 2025, fueled by foreign manufacturers like Samsung and Apple, has drawn scrutiny. Critics allege Vietnam serves as a transshipment hub for Chinese goods.

The EU has simultaneously joined China on the US watchlist, reflecting growing tensions in global trade dynamics. This development could ripple through supply chains, potentially impacting cryptocurrency markets as traders assess geopolitical risks.