Vietnam has intensified efforts to dismantle its thriving counterfeit market as it seeks to defuse US trade tensions and stave off a looming 46 percent tariff threatened by President Donald Trump’s administration.

Streets once bustling with knock-off fashion outlets in Hanoi now stand quiet, while rows of stalls lie shuttered in Ho Chi Minh City’s Saigon Square shopping mall—a hotspot named in a January report by the US Trade Representative as a major hub for fake luxury goods. The crackdown began in earnest following mounting US accusations that Vietnam was facilitating the flow of counterfeit and Chinese-origin goods into America.

Tran Le Chi, a Hanoi resident and regular buyer of fake Chanel T-shirts and Gucci sunglasses, says the crackdown has made it harder for her to source her usual items. “Why would I care if they are fake or not?” she said. “Only the super-rich people can afford the real ones.”

Vietnam, a global manufacturing hub and one of the United States’ top trade partners, faces scrutiny not just for its counterfeit market but also for allegedly enabling Chinese firms to reroute exports through its territory. In April, Vietnam’s trade ministry ordered a tightening of controls over the origin of goods, while the public security ministry launched a three-month anti-counterfeit campaign.

According to government officials, over 7,000 cases worth more than $8 million have been uncovered this year. Raids have yielded fake Rolex watches, counterfeit electronics such as Marshall speakers, and falsified health products. Officials suspect that much of the seized merchandise originates from China but is falsely labelled “Made in Vietnam.”

Analysts say the campaign reflects broader goals. “The effort partly aims to formalise the retail sector, but it also plays a role in Vietnam’s strategy to appease the US,” said Nguyen Khac Giang, a visiting fellow at Singapore’s ISEAS-Yusof Ishak Institute.

The outcome may determine whether Vietnam can avoid the punitive tariffs that could take effect in early July.