Trump considers tariff relief to secure TikTok sale by April 5

March 27, 2025
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Trump considers tariff relief to secure TikTok sale by April 5

US President Donald Trump signaled his willingness to reduce tariffs on China in an effort to facilitate a deal for TikTok’s Chinese parent company, ByteDance, to divest the popular short-video app before a looming deadline. 

Speaking to reporters on Wednesday, Trump suggested that offering tariff relief could help push Beijing toward approving the sale of TikTok, which boasts 170 million American users.

According to a report from Reuters, ByteDance faces an April 5 deadline to sell TikTok to a non-Chinese entity or risk a US ban on national security grounds. The requirement stems from a 2024 law passed with bipartisan support, reflecting Washington’s concerns that the app’s Chinese ownership could allow Beijing to conduct influence operations and collect data on American users.

“I might give them a little reduction in tariffs or something to get it done,” Trump said, acknowledging the crucial role China plays in finalizing any agreement.

TikTok’s Uncertain Future

The fate of TikTok has been in limbo since January, when the law mandating ByteDance’s divestiture was set to take effect. 

The app briefly went offline after the US Supreme Court upheld the ban, but Trump, upon taking office, issued an executive order pushing the enforcement deadline to April 5. He has since indicated that he might extend the deadline further to allow more time for negotiations.

The White House has taken an unusually hands-on approach to the deal, effectively acting as an investment bank in negotiations. Reuters reported last week that talks among investors, led by the administration, are centering on a plan in which ByteDance’s largest non-Chinese backers would increase their stakes and acquire TikTok’s US operations.

China’s Stance and Trade Tensions

China’s commerce ministry responded to Trump’s comments on Thursday, stating that its stance on tariffs remains unchanged but that it is open to discussions with Washington based on “mutual respect, equality, and mutual benefit.” However, securing Beijing’s approval for a deal remains one of the biggest hurdles, as China has been reluctant to relinquish control of a company valued in the tens of billions of dollars.

Trump has a history of leveraging tariffs in negotiations over TikTok. On his first day in office in January, he warned that he could impose additional duties on China if Beijing failed to approve a US deal for the app. Since then, his administration has raised tariffs on Chinese imports by 20%, adding another layer of complexity to the discussions.

The TikTok saga has also sparked a legal debate, with free speech advocates arguing that banning the app would violate the First Amendment by restricting Americans’ access to foreign media. The case has drawn comparisons to past efforts to regulate social media and online platforms over national security concerns.

With the April 5 deadline fast approaching, the stakes are high for ByteDance, TikTok’s millions of US users, and the broader US-China trade relationship. 

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