Donald Trump has indicated his willingness to decrease tariffs on China as part of a potential agreement with ByteDance, the Chinese parent company of TikTok, regarding the sale or control of the social media platform, which is used by 170 million Americans. Trump recognized that any agreement will involve the role of China, potentially requiring their approval. He mentioned the possibility of offering China a slight reduction in tariffs as an incentive for cooperating with the sale.
This statement suggests that securing a deal concerning TikTok is a priority for Trump’s administration, and the issue is significant enough to utilize tariffs as a negotiating tool with Beijing. As of now, TikTok and ByteDance have not commented on the proposal. There is a looming deadline of May 4th for ByteDance to find a non-Chinese buyer for TikTok or face a potential ban in the US due to national security concerns.
The concerns in Washington regarding TikTok’s ownership by ByteDance have driven this negotiation, with fears that it could be leveraged by the Chinese government for influence operations or the collection of data on Americans.
In previous moves, Trump has added tariffs to all imports from China, reaching up to 20%; and he has previously threatened to raise tariffs further if Beijing did not approve a deal with TikTok.
According to some sources, White House-led talks are focusing on a plan where the biggest non-Chinese investors in ByteDance will increase their stakes in order to acquire the US operations of the video app. The ownership and future of TikTok have been uncertain since a law was passed with bipartisan support, requiring ByteDance to divest TikTok by January 19th. Although the app was initially blocked, it became operational again after Trump issued an executive order postponing enforcement of the ban.
This deal has been under close scrutiny by the White House, effectively acting as an investment bank in the negotiation process. Meanwhile, there are arguments from free speech advocates that banning TikTok could unlawfully restrict Americans’ access to foreign media, contrary to the First Amendment of the US Constitution.
Source: https://www.theguardian.com/technology/2025/mar/27/donald-trump-china-tariffs-tiktok-deal
