The fate of TikTok in the United States has been hanging in the balance for months, and now, a new twist has emerged. U.S. President Donald Trump has suggested that he might reduce tariffs on China if it helps seal a deal for the sale of TikTok.
This move could be a game-changer, as ByteDance, TikTok’s Chinese parent company, faces an April 5 deadline to sell the app to a non-Chinese buyer or face a ban in the U.S.
Washington has long expressed concerns that TikTok, used by 170 million Americans, could be exploited by the Chinese government to collect data or spread misinformation. To prevent this, a law passed in early 2024 gave ByteDance until January 19 to sell TikTok. However, when Trump took office, he extended the deadline to April 5, and now he is hinting at pushing it further if needed.
China’s Approval is Crucial
Even if a buyer is found, China must agree to the deal. The Chinese government has not been eager to give up control of a company valued at tens of billions of dollars. This has been one of the biggest obstacles in finalizing an agreement.
China Slams U.S. Tariffs, Warns of Supply Chain Disaster
To encourage Beijing to approve the sale, Trump is considering offering a reduction in tariffs on Chinese goods. Over the past few months, the U.S. has added 20% to existing tariffs on all Chinese imports. By suggesting a potential reduction, Trump is signaling that he is willing to use economic incentives to get the deal done.
Trump previously warned that if China did not approve the sale of TikTok, he could impose even harsher tariffs. Now, he appears to be taking a softer approach by offering a trade-off instead. However, it remains uncertain whether this will be enough to persuade Beijing to cooperate.
Pressure and Uncertainty
The White House has been deeply involved in discussions over TikTok’s future, playing an unusual role in negotiations. Reports suggest that investors, including some of ByteDance’s biggest non-Chinese backers, are exploring options to increase their stakes and buy TikTok’s U.S. operations. If they succeed, the company could continue operating in the U.S. without being tied to China.
China Strikes Back New Rules to Counter Foreign Sanctions
Vice President JD Vance has stated that he expects the general terms of an agreement regarding TikTok’s ownership to be finalized by April 5.
The situation remains uncertain. In January, TikTok was briefly shut down after the U.S. Supreme Court upheld the ban. However, it came back online days later when Trump took office and postponed enforcement. Now, with the April 5 deadline approaching, all eyes are on whether a deal can be reached in time.
Meanwhile, free speech advocates argue that banning TikTok could violate the First Amendment, which protects access to information. This legal challenge could further complicate efforts to enforce the sale or ban.
Microsoft in Race to Buy TikTok Amid Trump’s Demands for Sale
For now, the future of TikTok in the U.S. remains unclear. Trump’s willingness to reduce tariffs signals that he is determined to get a deal done, but whether China will cooperate remains an open question.
