Trump Hints at Tariff Reductions for TikTok Deal Finalization

Trump suggested a “little reduction” in China tariffs if a TikTok deal is finalized, with a looming April 5 deadline for negotiations. Emphasizing the importance of tariffs over TikTok, Trump expressed that an outline of a deal could be anticipated. The exact details of potential buyers and ownership structures are not publicly available.

President Donald Trump indicated a potential for a “little reduction in tariffs” on China if they assist in finalizing a TikTok deal. TikTok, which is owned by the Chinese tech company ByteDance, boasts over 170 million users in the U.S. The company’s ability to operate hinges on Trump’s approval for either a partial sale or complete divestiture to an American entity, with the deadline for these negotiations set to expire on April 5 due to a law requiring ByteDance to either sell or ban the app.

At a recent Oval Office press conference, Trump announced a 25% tariff on foreign-made vehicles while discussing tariffs in relation to TikTok. He suggested the possibility of extending the deadline for the TikTok deal, emphasizing China’s role in approving the sale. Although he acknowledges TikTok’s popularity, he considers tariffs to be of greater importance, stating, “every point in tariffs is worth more than TikTok.”

U.S. Vice President JD Vance expressed optimism that a TikTok agreement could be achieved by the deadline, though the contractual processes involved may extend beyond that timeframe. Trump expressed hope that a preliminary outline of the deal could materialize by April 5, with suggestions from Vance indicating that an agreement could address national security concerns while allowing for an “American TikTok enterprise.”

The specifics surrounding the potential TikTok deal remain undisclosed, including details about prospective buyers. Trump has previously suggested that the U.S. should hold a 50% stake in any joint venture formed. Any arrangement will need to be approved by Trump, ByteDance, and the Chinese government.

In summary, Trump is considering a tariff reduction for China contingent on their cooperation in finalizing a TikTok deal. The fate of TikTok in the U.S. is tied to negotiations set before an April 5 deadline. While there is optimism about reaching a deal that ensures national security and potentially involves U.S. ownership, details about stakeholders and arrangements remain confidential. Trump’s focus on tariffs reveals a priority balance between trade considerations and social media operations.

Original Source: markets.businessinsider.com