Trump Eyes Tariff Reduction to Secure TikTok Sale to US Buyers
The fate of TikTok in the United States has once again taken centre stage, with President Donald Trump indicating he may lower tariffs on Chinese imports to facilitate a deal for the app’s US operations.
With 170 million American users, TikTok has been at the heart of a political and business standoff, as its Chinese parent company ByteDance faces an 5 April deadline to divest its US business or risk a nationwide ban.
Trump Signals Flexibility on Tariffs for TikTok Deal
Speaking from the Oval Office, Trump suggested that offering Beijing a tariff reduction could help seal an agreement.
He told reporters,
“I think they’ll do that. Maybe I’ll give them a little reduction in Tariffs or something, to get it done.”
The president noted that while China may need to approve any sale, he believes a resolution is within reach.
He explained,
“Because every point in Tariffs is worth more money than TikTok.”
Trump’s willingness to adjust tariffs reflects a broader strategy to reshape US-China trade relations.
Since taking office, he has repeatedly increased levies on Chinese goods, most recently raising tariffs on all imports from China to 20% earlier this month.
On Wednesday, he also introduced a new 25% duty on automobile imports, further escalating trade measures.
Negotiations Ongoing with Multiple Bidders
Four potential buyers are in talks to acquire TikTok’s US operations.
While Trump did not name all of them, publicly known contenders include a group led by billionaire Frank McCourt and Reddit co-founder Alexis Ohanian, another featuring tech entrepreneur Jesse Tinsley and YouTube personality MrBeast, and San Francisco-based Perplexity AI, which has proposed a merger.
Oracle Corp. is also weighing an option that would see it provide security assurances and take a small stake in the US entity, potentially allowing ByteDance to retain control of TikTok’s core algorithm.
A final deal must gain approval from multiple parties, including Trump, ByteDance, and the Chinese government.
Retaining TikTok’s algorithm could help ease Chinese concerns, but it may also pose legal challenges under US divestiture laws.
Deadline Extension Possible as White House Steers the Deal
Originally, ByteDance had until 19 January 2025 to sell TikTok under a law signed last year by President Joe Biden.
However, when Trump took office, he delayed enforcement by 90 days, pushing the deadline to April.
Now, the president has signalled that he may extend it further if a deal is not finalised in time.
Trump said,
“We’re going to have a form of a deal, but if it’s not finished, it’s not a big deal. We’ll just extend it.”
The White House has been actively involved in the deal, playing an unusual role in negotiations.
Vice President JD Vance has expressed confidence that a framework agreement will be reached before the deadline.
However, securing China’s approval remains a key obstacle, given the platform’s significant global influence and ByteDance’s reluctance to part with its prized asset.
TikTok’s Role in Trump’s Political Strategy
Despite previously advocating for a TikTok ban, Trump’s stance has shifted in recent years.
The platform played a crucial role in his 2024 election campaign, allowing him to connect with younger voters.
His growing support for the app has been evident, and he now appears determined to prevent its shutdown in the US.
TikTok briefly went offline in January after the Supreme Court upheld the divestiture law, but it was revived days later when Trump postponed enforcement.
Since then, efforts to finalise its sale have intensified, with the administration keen to balance national security concerns with economic and political considerations.
As negotiations continue, Trump remains firm in his belief that a deal will be reached—whether through direct sale, a partnership structure, or an extended deadline.
With trade, technology, and political interests intertwined, the future of TikTok in the US is still uncertain, but the president has made it clear he is willing to leverage tariffs to secure an agreement.
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Hui Xin