Trump considers tariff reductions to secure TikTok deal

President open to negotiations as deadline approaches for ByteDance.

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US President Donald Trump announced on Wednesday that he is open to reducing tariffs on China as a means to facilitate a deal with ByteDance, the Chinese parent company of TikTok, which has approximately 170 million American users.

The deadline for ByteDance to secure a non-Chinese buyer for TikTok is April 5, or face a ban based on national security concerns outlined in a 2024 law. The legislation stems from worries in Washington regarding TikTok's ties to the Chinese government, leading to fears that it could be used for influence operations and data collection on American users.

 

 

 

 

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Trump indicated that he is willing to extend the April deadline if an agreement is not reached. He stated, “Maybe I’ll give them a little reduction in tariffs or something to get it done,” highlighting China’s crucial role in the negotiations.

The urgency of the TikTok situation is underscored by the law mandating ByteDance to divest TikTok by January 19. The app's fate became uncertain earlier this year when the US Supreme Court upheld a ban, although it resumed operations shortly after Trump took office, who then issued an executive order delaying enforcement until April 5.

The White House has been deeply involved in the negotiations, akin to an investment bank, as discussions are underway among investors looking to increase stakes in TikTok's US operations. Vice President JD Vance expressed confidence that an outline of a deal could be achieved by the impending deadline.

In February and earlier this month, Trump implemented additional levies of 20% on all imports from China, intensifying existing tariffs. This escalation is part of a broader trade conflict, with China retaliating with its own tariffs on US agricultural products and other sectors.

The president, who had previously sought a ban on TikTok, now actively engages with the platform, boasting over 15 million followers and billions of views during his election campaign.

Trump's willingness to leverage tariffs as a bargaining chip underscores the importance of finalising a deal over TikTok’s ownership.