Business
The first trade war with China was a boon for Vietnam — what about now?
QUANG NINH, Vietnam — When Le Ngoc Tham became sales manager for a new industrial park in northern Vietnam, the goal was to turn it into an easy alternative for manufacturers leaving China to avoid the tariffs of the first U.S.-Sino trade war.
Three years later, with less than half of the 1,716-acre project completed, dozens of companies interested in leasing the land are having second thoughts. The source of hesitation is Trump’s latest tariffs, which, as announced earlier this month, included a 46% tax on imports from Vietnam, the country’s eighth-largest trading partner.
But even though Trump announced a 90-day temporary stay on the new duties on Wednesday, and the administration said late Friday that it would exclude certain electronics from “reciprocal” tariffs, Vietnam isn’t exactly in the clear.
Sales manager Le Ngoc Tram at Amata Industrial Park in Quang Ninh province, Vietnam.
A 46% tariff rate, which is higher than most other nations, would make Vietnam-made products noncompetitive in the U.S., its largest export market. Both buyers and producers of those goods would likely turn to countries facing lower rates, dragging down industrial activity and foreign investment in Vietnamese manufacturing.
“In the short term, that will be a hit to manufacturers,” said Le, who works for the Amata Corporation, an industrial real estate company based in Thailand. “So the question they ask us is: What are we going to do next?” While the owners of factories that have broken ground here have little recourse, about 40 companies that have inquired about building facilities are hitting pause — one-fifth of which were in the final stages of investment, she said.
Vietnam benefited substantially after Trump imposed tariffs on China in 2018, as companies producing goods for the U.S. there turned to Vietnam. In Quang Ninh province and the neighboring port city of Haiphong, the arrival of high-tech manufacturing, including Apple suppliers Pegatron and Foxconn, contributed to the country’s rapid industrial development and strong economic growth. In 2019, Vietnamese exports to the U.S. surged 35% compared to the previous year.
Now manufacturing accounts for more than one-fifth of Vietnam’s GDP and will be a critical driver in hitting the government’s 8% target rate for 2025. Trump’s protectionist approach to global trade, however, threatens to stymie the boom that powered Vietnam’s economic rise for the last decade.
On April 2, in what Trump dubbed “Liberation Day,” the president announced a sweeping 10% on global imports, in addition to what he called “reciprocal tariffs” that targeted countries with large trade deficits with the U.S. Vietnam was one of the hardest hit nations.
Days after the news, Vietnamese leader To Lam offered to cut its tariffs on American imports to zero if the U.S. did the same. He also asked Trump to delay the taxes by at least 45 days and invited Trump to visit Vietnam.
“If it really gets implemented like this, the impact is dramatic for the economy,” said Matthieu Francois, a partner at Delta West, a Ho Chi Minh City-based advisory firm that helps businesses expand in Vietnam. “This would cancel out the entirety of the growth of Vietnam right now.”
A factory belonging to Jinko Solar, a Chinese company, at Amata Industrial Park in Quang Ninh province, Vietnam.
On Wednesday, the day that tariffs were meant to take effect, Le’s clients still had little idea what to expect.
At Amata’s facilities, where companies make solar panels, electronics and car parts about 120 miles from China’s borders, workers continued to dig trenches around empty lots in preparation for the installation of utilities. Autoliv, a Swedish auto supplier, tested production lines at its new airbag factory slated to open in October.
“We are still monitoring the situation and observing the next stage, to have scenarios to protect ourselves,” Le said. “But we will find a way to live with the tariffs.”
Nearly all the goods manufactured at Amata’s industrial park in Quang Ninh are for export, with as much as 70% of them destined for the U.S.
If Trump goes ahead with the tariffs, Le said Vietnam could try to offset the impact by lowering corporate tax rates further, or offering more incentives for companies that invest in local factories.
Production manager Richard Nguyen at Swedish company Autoliv’s airbag production factory inside Amata Industrial Park, in Quang Ninh province, Vietnam.
China has retaliated against Trump’s tariffs by raising import duties on U.S. goods to 125%. But Vietnam has taken a more conciliatory approach, even before the latest round of tariffs was announced. The country has proposed increasing purchases of liquefied natural gas and airplanes from the U.S. to mitigate the trade imbalance.
The Vietnamese government has also supported construction of a $1.5-billion Trump Organization golf resort about an hour’s drive from Hanoi, and recently approved a trial of the Starlink satellite internet service by Elon Musk’s SpaceX.
“Vietnam is pragmatic and they’re flexible,” said Rich McClellan, a strategic advisor on policy and economic strategy in Vietnam. “They understand the transactional nature of the current administration in the U.S.”
Vietnam’s manufacturing industry began expanding in earnest in the 2000s, as the country’s low-cost, educated working class grew and the government prioritized producing goods for export. Trump’s 2018 tariffs on Chinese imports prompted manufacturers to seek production bases outside of China, many of them favoring Vietnam for its cheap labor and proximity to China. The shift accelerated when the COVID-19 pandemic caused additional disruptions to the global supply chain.
In a sign of strengthening economic and diplomatic ties, the U.S. and Vietnam established a new bilateral agreement in 2023 that pledged to deepen collaboration on policy and trade, including a $2-million investment from the U.S. in Vietnam’s growing semiconductor sector.
But as Vietnamese manufacturing has boomed, so has the nation’s trade surplus with the U.S., rising fourfold since 2015 to $123.5 billion last year. Trump has accused Vietnam of effectively taxing American goods at 90%.
“Vietnam is very clear that the development of their country goes hand in hand with economic growth, so they need to take actions to accommodate foreign investors,” said Bruno Jaspaert, chairman of the European Chamber of Commerce in Vietnam and chief executive of Deep C Industrial Zones, a Belgian industrial real estate developer. “If they can appease the U.S. and China, which so far they have been able to do, I believe they could come out a winner in these chaotic times.”
The first 21 years after it was established in Haiphong, Deep C attracted $1 billion in investment, Jaspaert said. In the past seven years, it’s attracted $7 billion.
Deep C general sales and marketing director Koen Soenens in his office in Haiphong in northeastern Vietnam.
When Koen Soenens joined Deep C in 2019, his orientation included a presentation with a photo of Trump, whose tariffs had become the impetus for more factories to invest in Vietnam. “The story behind that picture was actually very straightforward. He was at that time our best salesperson,” the company’s general sales and marketing director explained.
Six years later, that image is just as relevant to understanding the industry, but its significance has changed, he said: “[Trump] is the one who is backstabbing Vietnam.”
Since the tariffs on Vietnam were announced, Soenens has watched company executives react with devastation, disappointment and as of Thursday, hope. The three-month reprieve could give manufacturers time to reduce reliance on exports to the U.S. and assess the possibility of building factories in countries with lower tariff rates while Vietnam negotiates with the U.S.
An airbag production factory run by Swedish company Autoliv, at Amata Industrial Park in Quang Ninh province, Vietnam.
If the reciprocal tariffs take effect at the proposed rate, Vietnam will face the third-highest U.S. import duties in the world, after China and Cambodia. Trump postponed the 49% import duty on Cambodian goods Wednesday, but increased tariffs on China to 145%.
“It’s never going to go back to what it was before, that’s very obvious,” Soenens said. “The relocation from China to elsewhere continues, and then it will be a fight between Vietnam and some of the other countries.”
The rush to build factories in Vietnam has strained the country’s labor supply in recent years. For factories that need more than 100,000 workers, Vietnam is no longer an option, he added.
A slowdown in foreign investment could ease that strain and free up more resources, benefiting Vietnam-based manufacturers that aren’t subject to Trump’s reciprocal tariffs. For example, Soenens said auto parts manufacturers here are only subject to a global 25% tariff on exports to the U.S. He added that one Tesla supplier was optimistic the reciprocal tariffs could make local hiring easier for the company.
Another constraint in Vietnam’s industrial development is the country’s power grid, Soenens said, and its lag in accommodating renewable energy.
Tariffs aside, such bottlenecks threaten to derail Vietnam’s economic growth if left unresolved, said Francois of Delta West.
“It’s very likely the dominant theme of Vietnam going forward will be how to be more efficient, more productive,” Francois said. “This is the single focus of the Vietnamese strategy to keep growing.”
Business
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
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