President Trump has suggested a potential trade-off: he’s open to lowering tariffs on goods from China if it helps secure a deal for an American company to buy TikTok’s US operations from its Chinese owner, ByteDance.
He told reporters, ‘To get China to agree to this TikTok sale, maybe we’d reduce those tariffs.’ He emphasized that the tariffs are a powerful tool, even more so than the TikTok deal itself.
This idea came up as Trump announced new tariffs on car imports and prepared to unveil his broader trade plans. He’s already placed significant tariffs on Chinese goods.
He also seemed confident about the TikTok situation, saying he expected to see at least the outline of a deal soon, possibly by next week. If needed, he’s prepared to extend the deadline for the sale, emphasizing his control over the process.
The background here is that under a law passed during President Biden’s time, ByteDance was supposed to sell TikTok’s US operations by January. To avoid a shutdown of the app, Trump stepped in and delayed the deadline, giving everyone more time to negotiate. He’s mentioned talking to four potential buyers, though he hasn’t named them all.
We do know some of the interested parties: a group led by Frank McCourt and Alexis Ohanian, another involving tech entrepreneur Jesse Tinsley and MrBeast, and a merger proposal from Perplexity AI. Oracle is also considering a role, possibly providing security and taking a small stake, though that deal might leave TikTok’s key algorithm in Chinese hands.
Getting any deal done is complicated. It needs approval from Trump, ByteDance, and the Chinese government. Letting ByteDance keep the algorithm could make it easier to get their approval, but it might not satisfy the requirements of the US law.
It’s interesting because Trump, who once wanted to ban TikTok, has now become a supporter. He sees it as a valuable tool for reaching younger voters in his 2024 campaign.
