Former US President Donald Trump has said he may consider lowering tariffs on Chinese imports to persuade Beijing to approve the sale of TikTok’s US operations to an American company.
“Every point in tariffs is worth more than TikTok,” Trump told reporters on Wednesday in the Oval Office. He hinted that offering China a tariff reduction might help secure its approval for the sale.
His comments came during an event where he announced a new 25% tariff on automobile imports, part of a broader reciprocal trade policy set to be detailed next week. The US has already imposed 20% tariffs on Chinese goods.
The video-sharing platform TikTok, owned by ByteDance Ltd., has faced pressure to sell its US operations after President Joe Biden signed a law last year requiring the divestment by January 19, 2025.
The app narrowly avoided a shutdown earlier this year when Trump signed an executive order delaying enforcement by 90 days—extending the deadline to April 5, 2025—to allow more time for a sale agreement.
Trump expressed optimism that a deal could be finalised soon, saying:
“We’re going to have a form of a deal, but if it’s not finished, it’s not a big deal. We’ll just extend it. I have the right to have the deal and to extend it if I want.”
Several bidders have shown interest in acquiring TikTok’s US business, including:
– A group led by billionaire Frank McCourt and Reddit co-founder Alexis Ohanian
= Tech entrepreneur Jesse Tinsley and YouTube star MrBeast
– San Francisco-based AI company Perplexity AI
Oracle Corp., which is exploring a security-focused deal that might allow ByteDance to retain TikTok’s algorithm
A successful sale would require approval from both the US and Chinese governments. One of the biggest challenges is whether ByteDance will be allowed to keep its powerful recommendation algorithm, which China is unlikely to approve for sale.
Trump, who previously sought to ban TikTok during his presidency, has since softened his stance. He now credits the platform for helping him connect with younger voters as he campaigns for the 2024 US presidential election.
With the April 5 deadline fast approaching, the fate of TikTok’s US operations remains uncertain, and trade negotiations with China could play a key role in securing a final deal.