On Oct. 2, USTR announced it will “investigate Vietnam’s acts, policies, and practices related to the import and use of timber that is illegally harvested or traded, and will investigate Vietnam’s acts, policies, and practices that may contribute to the undervaluation of its currency and the resultant harm caused to U.S. commerce.” The industry has limited exposure on the Vietnam timber issue but the currency valuation investigation poses significant risk to companies doing sourcing production in Vietnam. Should the USTR find currency manipulation, punitive tariffs will be applied to products made in Vietnam entering the U.S. Additional background information is provided below:
- Initiation of Section 301 Investigation: Vietnam’s Import and Use of Illegal Timber
- Initiation of Section 301 Investigation: Vietnam’s Currency Valuation
SFIA has signed an Association letter to USTR opposing the use of tariffs as remedy should currency issues be found. Should you wish to express your opposition to tariffs please find a Company Sign On letter here. The deadline to sign on is November 9.