World

Trump Considers Tariff Reductions to Seal TikTok Deal with China!

2025-03-27

Author: John Tan

In a High-Stakes Negotiation, Will TikTok Survive the Deadline?

WASHINGTON - In a surprising turn of events, U.S. President Donald Trump declared on March 26 that he might lower tariffs to finalize a deal involving TikTok’s Chinese parent company, ByteDance. The short-video app, which boasts 170 million American users, is at the center of a tense negotiation that could reshape its future in the United States.

With an impending deadline of April 5, ByteDance is under pressure to find a non-Chinese buyer or risk a national security ban, a measure supported by a law enacted in 2024. This legal framework arose from concerns that China could exploit TikTok—given ByteDance’s ties to the Chinese government—for surveillance or influence operations against American citizens.

In a bid to facilitate negotiations, Trump stated that he might offer a "little reduction in tariffs or something" to expedite the deal. He acknowledged that any agreement would require China's endorsement, highlighting the complex diplomatic dance inherent in U.S.-China relations.

The stakes are incredibly high; TikTok is more than just a social media platform—it's a cultural phenomenon affecting millions of Americans. Trump's willingness to leverage tariff reductions indicates the significance of this deal, which ties back to his earlier administration strategies where tariffs have been utilized as bargaining tools in negotiations with China.

Earlier in March, Trump raised tariffs on Chinese imports by 20%, a move that signaled his intent to keep pressure on Beijing. History shows that convincing China to relinquish control of a business valued in the tens of billions is no small feat. Trump's administration has previously hinted at using the threat of tariffs to motivate a resolution to ownership disputes.

Vice-President J.D. Vance has expressed optimism, believing that the terms to resolve TikTok’s ownership issue will be reached by the fast-approaching April 5 deadline. Reports from Reuters indicate that discussions led by the White House focus on having the largest non-Chinese investors of ByteDance increase their stakes in the company to purchase TikTok's U.S. operations.

The future of TikTok remains uncertain as the app's fate has hung in the balance since bipartisan legislation mandated ByteDance to divest from TikTok by January 19. Although the U.S. Supreme Court initially upheld the ban, the app resumed operations shortly after Trump took office, as he issued an executive order delaying enforcement until April 5, hinting at possible further extensions in order to broker a deal.

As negotiations proceed, the White House's unprecedented involvement underscores the deal's significance, with officials acting almost as investment bankers in this pivotal discussion. Critics, including free speech advocates, argue that restricting access to foreign media infringes upon First Amendment rights, complicating the conversation around TikTok's future in the U.S.

As the countdown to the deadline ticks away, the world watches closely: Will Trump’s willingness to reduce tariffs pave the way for TikTok's survival, or will it succumb to the pressures of international diplomacy? Stay tuned!