Copy That? USTR Launches Section 301 Investigation Into Vietnam’s IP Practices

On May 29, the Office of the U.S. Trade Representative (USTR) launched an investigation into Vietnam’s policies related to intellectual property (IP) protection and enforcement under Section 301 of the Trade Act of 1974. Stakeholders must submit public comments by July 2. USTR will issue an initial determination on whether Vietnam’s policies are actionable under Section 301 and, if so, may propose tariff or non-tariff measures.

Background

Section 301 of the Trade Act of 1974

Section 301 authorizes USTR to investigate whether a foreign country’s act, policy, or practice either: (1) violates or is inconsistent with a trade agreement or denies benefits to the United States; or (2) is unjustifiable and burdens or restricts U.S. commerce. Investigations may be initiated by USTR or in response to petitions. While the statute requires certain consultations, it imposes few procedural or substantive limits. Upon finding unfair or unreasonable practices, USTR has broad authority to impose tariffs or other trade measures.

2026 Special 301 Report

The probe follows USTR’s 2026 Special 301 Report, which identified Vietnam as the sole Priority Foreign Country (PFC)—the first such designation in 13 years. This category is reserved for countries with the most egregious IP-related practices and the greatest adverse impact on U.S. products, particularly where there is limited progress in negotiations.

USTR found that Vietnam has persistently failed to address longstanding IP concerns, despite U.S. proposals in 2020 and 2023. Progress has also lagged during negotiations toward a bilateral trade agreement. Deputy USTR Rick Switzer met with Vietnamese Prime Minister Lê Minh Hưng on May 20 to advance those discussions. The two sides reached a preliminary framework in July 2025, followed by a joint statement in October 2025 formalizing the agreement.

The Special 301 Report gave USTR 30 days to decide whether to launch a Section 301 investigation, which it has now done.

Section 301 Probe

USTR’s notice relies heavily on the Special 301 findings and Vietnam’s PFC designation. It identifies five key areas of concern:

• Online piracy: Vietnam remains a major source of global copyright infringement, hosting high-traffic piracy websites.
• Counterfeiting: Counterfeit goods are widely available in physical markets and increasingly on e-commerce platforms.
• Border enforcement: Customs enforcement is inconsistent, including limited action to suspend clearance of suspected infringing goods.
• Unlicensed software: Authorities have taken little enforcement action against corporate use of unlicensed software in recent years.
• Signal theft: Criminal law does not adequately address satellite and cable signal piracy.

Based on these failures, USTR proposes to find that Vietnam’s IP practices burden or restrict U.S. commerce and are therefore actionable under Section 301.

Implications

The proposed determination increases the likelihood of tariffs or other trade measures. USTR will conduct consultations with Vietnam and solicit public input before issuing an initial determination, followed by further comment and a final determination. The final determination is due within six months of initiation (with a possible three-month extension), suggesting a timeline of late October.

Section 301 has emerged as the administration’s primary tool to reestablish country-specific tariffs following the Supreme Court’s February 2026 decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The current 10% global tariff under Section 122 is temporary and set to expire on July 24, 2026.

Separately, USTR has already proposed a 12.5% tariff on Vietnam under a Section 301 investigation related to forced labor. Whether that tariff would stack with any IP-related tariffs remains unclear, but the combined effect could approximate prior IEEPA tariff levels (20% baseline and 40% for suspected transshipment).

The administration may also use tariffs as leverage in negotiations. Any eventual trade agreement will likely include stronger IP commitments in exchange for tariff relief. USTR has shown flexibility in prior cases—for example, phasing in tariffs on Nicaragua from 0% (2026) to 15% (2028)—and could adopt a similar approach here.

Next Steps

USTR is accepting written comments through July 2 and will hold public hearings (schedule forthcoming). Stakeholders can submit comments via USTR’s portal.

Brownstein is available to assist stakeholders in navigating the investigation and mitigating risk. Our services include:

• Developing Section 301 advocacy strategies;
• Preparing written comments, hearing submissions and rebuttals;
• Assessing supply chain exposure to Vietnamese inputs;
• Conducting tariff impact analyses under privilege;
• Advising on mitigation strategies (e.g., tariff engineering, origin reviews); and
• Interpreting developments related to Vietnam’s PFC designation and IP enforcement.

For more information, please contact a member of the Brownstein team.

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