On March 26, President Donald Trump proposed reducing his Trump tariffs on China to facilitate the sale of TikTok’s US operations, acknowledging Beijing’s role in approving the deal.
TikTok’s parent company, ByteDance, faces an April 5 deadline to divest the video-sharing platform or face a US ban.
Trump hinted at extending the deadline and using the Trump China tariff proposal as leverage to secure Beijing’s approval, saying, “Maybe I’ll give them a little reduction in tariffs or something to get it done.”
TikTok in the US
TikTok’s fate in the US now hinges on negotiations between ByteDance, potential buyers, and Beijing’s approval. Under the 2024 law, ByteDance must sell the app or risk a ban due to concerns about the data collection habits of the app.
Trump tariffs on China have been a huge issue, with concerns that TikTok could be used by China to gather data on US users. The tension over Trump’s tariffs on China, have maintained the uncertainty in the sale at a constant level.
A spokesman for China’s foreign ministry mentioned that ” China’s opposition to the imposition of additional tariffs has always been consistent and clear,” with the biggest obstacle closing the sale of TikTok is gaining Beijing’s approval. National security concerns and Trump’s China tariffs have not discouraged the Chinese government from approving the sale. Approval by the Chinese government is the deciding factor.
What Will Happen to TikTok
Though he has tried to ban the app in the past, Trump now embraces its influence. This new twist complicates the narrative of Trump tariffs on China, as his technology and trade policy has now collided with his utilization of a platform he has denounced in the past.
Trump says he prefers not to impose tariffs on China, to prevent tensions as well as the global community at large. However, early in March 2024, the US imposed a 20% tariff on Chinese imports, following a February tariff hike. Trump delivers fresh tariff threats against EU and China as part of his ongoing attempt to apply economic pressure.
In response, China warns Trump over tariffs plans, urging the return to trade talks. Such trade tensions, defined by Trump’s China tariffs and retaliations, remain a complicating factor in international economic relations.
With the April 5 deadline looming, it’s still unknown if Trump’s offer to reduce tariffs will result in a sale of TikTok. With both the US and China face mounting pressure to act, and a deal is most likely to occur if the two can come to terms. However, the uncertain destiny of Trump’s China tariffs will go a long way in determining the destiny of the Chinese app in America.
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