Former President Donald Trump has suggested he might lower tariffs on Chinese imports to facilitate the sale of TikTok, the video-sharing app owned by China’s ByteDance. Addressing reporters on Wednesday, Trump acknowledged the critical role China would play in approving any deal.
“With TikTok, China will have to be involved, possibly with some form of approval,” Trump said. “Maybe I’ll give them a little reduction in tariffs or something to get it done.”
This statement underscores the administration’s determination to finalize the sale, with Trump even considering using tariffs as a negotiation tool.
ByteDance Races Against April Deadline
ByteDance faces an April 5 deadline to divest TikTok’s U.S. operations or risk a nationwide ban. Initially set for January, the ban was delayed under a 2024 law due to national security concerns. Lawmakers remain uneasy over the app’s Chinese ownership, fearing it could be leveraged for data harvesting or influence campaigns against Americans.
While TikTok has not issued a response to Trump’s latest remarks, the pressure on ByteDance to find a suitable buyer is mounting.
China’s Leverage in the Sale
China’s approval remains a significant obstacle in the sale process. Beijing is unlikely to approve any deal without securing favorable terms. Trump’s willingness to offer tariff relief could be an effort to ease Chinese resistance. Notably, Trump imposed a 20% tariff on all Chinese imports earlier this year, further tightening trade relations.
On his first day back in office, Trump warned of imposing additional tariffs if China obstructed the sale. With both economic and political stakes high, the administration is eager to navigate these negotiations effectively.
White House Takes Active Role
Vice President JD Vance has expressed confidence that a deal can be struck by the April deadline. Reports suggest the White House has been heavily involved in facilitating discussions. According to Reuters, a proposed plan would see ByteDance’s largest non-Chinese investors raise their stakes to acquire TikTok’s U.S. operations.
Trump has already extended the enforcement deadline once and suggested he might do so again if necessary. His administration’s hands-on approach resembles that of an investment bank, mediating talks to ensure the deal’s success.
Legal and Free Speech Debates
Despite bipartisan support for the TikTok divestment law, it has faced criticism from free speech advocates. Civil liberties groups argue that a ban could infringe on Americans’ First Amendment rights by restricting access to foreign media.
In January, the U.S. Supreme Court upheld the ban, leading to TikTok briefly shutting down operations. However, Trump issued an executive order delaying the law’s enforcement, allowing the app to resume service while negotiations continue.
A resolution to the TikTok sale could reshape trade dynamics between the U.S. and China. Trump’s suggestion of reducing tariffs signals a possible shift in policy to secure the deal. Conversely, a failed agreement could exacerbate tensions and invite further economic retaliation.
As the April 5 deadline approaches, all eyes remain on the White House and ByteDance. The outcome will not only determine the future of TikTok in the U.S. but also influence broader U.S.-China trade relations.