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Trump Weighs Tariff Reduction for China to Secure TikTok Deal as Deadline Nears

Trump Weighs Tariff Reduction for China to Secure TikTok Deal as Deadline Nears

President Donald Trump has suggested that he may reduce tariffs on China in a last-minute effort to secure a deal that would force ByteDance, the Chinese parent company of TikTok, to divest its U.S. operations.

With an April 5 deadline fast approaching, Trump’s administration is scrambling to finalize an agreement that would address national security concerns while allowing TikTok to continue operating in the country.

“Maybe I’ll give them a little reduction in tariffs or something to get it done,Trump said during a press conference on Wednesday.TikTok is big, but every point in tariffs is worth more than TikTok.”

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The remark signals that Trump is now looking at trade as a bargaining chip in the TikTok negotiations, seeking to pressure China into allowing ByteDance to sell the app’s U.S. arm. However, it remains unclear whether Beijing will be willing to make any concessions, as Chinese officials have repeatedly opposed the forced divestiture, framing it as an unfair business practice.

A Long Battle Over TikTok

The latest developments come amid a years-long battle between Washington and Beijing over TikTok, which has become a global social media powerhouse with over 150 million users in the U.S. The platform, known for its short-form videos, viral trends, and algorithm-driven content, has been at the center of national security debates since 2020.

Concerns over TikTok began during Trump’s first term when U.S. intelligence agencies and lawmakers raised fears that ByteDance could be forced to share American user data with the Chinese government under Beijing’s cybersecurity laws. Opposers of TikTok argue that its data collection practices—similar to other social media platforms—pose a unique risk because the company is headquartered in China.

In 2020, Trump attempted to ban TikTok outright, issuing an executive order that would have prohibited American companies from conducting transactions with ByteDance. However, the move was blocked by U.S. courts, which ruled that the administration lacked legal authority to enforce such a ban without due process.

Since then, efforts to force a sale of TikTok’s U.S. operations have continued under both Trump and his predecessor, Joe Biden. Last year, lawmakers introduced a bill aimed at banning TikTok or forcing ByteDance to divest. The bill was signed into law by Biden in April. Under the law, TikTok’s China-based parent ByteDance was supposed to find a U.S. buyer within 270 days, (about nine months) or be banned on Jan. 19.

In January, Trump signed an executive order extending the deadline for ByteDance to sell TikTok’s U.S. arm to April 5, 2025. The move provided a temporary grace window for negotiations to continue, but as the deadline nears, there has been little sign of progress. If TikTok is not sold to an approved buyer by April 5, the original law that bans it nationwide will once again go into effect.

Trump’s New Strategy: Using Tariffs as Leverage

Now, with time running out, Trump appears to be shifting his approach, tying the TikTok sale to broader trade issues with China. His suggestion that he may reduce tariffs in exchange for China’s cooperation reflects the high stakes of the situation.

The Trump administration has imposed stiff tariffs on Chinese imports as part of its long-running trade war with Beijing. These tariffs, which cover everything from electronics to industrial machinery, have had a significant impact on global supply chains and added billions in costs for American businesses and consumers.

However, Trump is signaling that he is willing to make economic concessions to secure TikTok’s divestiture by offering a partial reduction in tariffs.

Will China Hold Its Position of Resistance to a Forced Sale?

China has repeatedly opposed the forced sale of TikTok, arguing that it violates principles of free trade and unfairly targets a Chinese company. In 2020, Beijing updated its technology export regulations to include algorithms—widely seen as a move to prevent ByteDance from selling TikTok’s powerful recommendation system to an American company.

Given this history, it is uncertain how China will respond to Trump’s latest offer. If Beijing continues to resist, the administration may face a difficult choice:

  1. Extend the deadline again, pushing the issue further into the future, or
  2. Move forward with a ban or legal action, risking backlash from TikTok users and potential diplomatic tensions with China.

The Political and Economic Stakes

Trump’s handling of the TikTok issue is not just about national security—it is also about economic and political influence. The administration has floated the idea that the U.S. government should maintain a 50% ownership stake in TikTok through a joint venture, ensuring American control over the company’s operations.

Additionally, TikTok remains an important platform for young people, many of whom have pushed back against efforts to ban or regulate the app.

Vice President JD Vance has expressed optimism that a deal will be reached before the April deadline.

“There will almost certainly be a high-level agreement that I think satisfies our national security concerns, allows there to be a distinct American TikTok enterprise,Vance told NBC News earlier this month.

The deadline for the executive order doesn’t appear to be set in stone. As the April 5 deadline looms, If no deal is reached, the administration may be forced to extend the deadline again—something Trump has already suggested is a possibility.

We’re going to have a form of a deal, but if it’s not finished, it’s not a big deal,Trump said on Wednesday.We’ll just extend it.”

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