President Donald Trump announced Wednesday that he might reduce tariffs on China if Beijing approved a deal his administration facilitated regarding TikTok.
“China is going to have to play a role in that, possibly in the form of an approval, maybe, and I think they’ll do that,” Trump told reporters at the White House, NBC reported.
The social media app’s parent company, ByteDance, is under pressure to find a non-Chinese buyer for TikTok by April 5, or face a potential U.S. ban over national security concerns, as required by a 2024 law.
Deadline extension possible for deal
Trump indicated that he could extend the April 5 deadline if an agreement on TikTok’s future was not reached by then. He acknowledged China’s significant role in finalizing any deal, mentioning that he might offer a “little reduction in tariffs” to ensure a successful outcome.
The president’s comments signal that finalizing the TikTok deal is a priority for his administration, with Trump’s willingness to use tariffs as leverage underlining how serious the administration was about pushing through the sale of the app, reported Reuters.
In recent months, Trump increased tariffs on Chinese imports, adding 20% to the existing levies.
Bipartisan law forces TikTok sale
TikTok’s future in the U.S. has been uncertain since last year, when Congress passed a law requiring ByteDance to sell TikTok to a non-Chinese company or face a nationwide ban.
The law was signed by former President Joe Biden, and despite challenges from TikTok, the U.S. Supreme Court upheld the law. The ban briefly took effect, but TikTok was allowed to restore service after Trump expressed a willingness to review the situation.
Possible agreement by April 5
Getting China’s approval for the sale of TikTok has been a major hurdle in the process. The Chinese government’s reluctance to give up control of the valuable app has been one of the biggest obstacles in finalizing a deal.
Trump had previously warned China that if they failed to approve a U.S. deal, tariffs could be imposed.
Meanwhile, Vice President J.D. Vance expressed optimism that an agreement on TikTok’s ownership could be reached by the set deadline, with recent White House-led talks indicating that major investors were working on a plan to have non-Chinese backers of ByteDance take control of the app’s U.S. operations.
“We will find the one that’s best, best for the country,” Trump said Wednesday. “I’m worried about our country more than anything else with respect to TikTok.”
Speculation has persisted about potential buyers for TikTok, a platform with millions of users and a valuation of up to $50 billion.
High-profile buyers for TikTok
Billionaire Frank McCourt and his internet group, alongside Shark Tank’s Kevin O’Leary, had reportedly proposed purchasing TikTok from ByteDance in December.
President Trump mentioned Microsoft as a potential buyer, but no additional details were provided. Oracle also explored a deal, and former Treasury Secretary Steven Mnuchin, who helped broker a 2020 deal involving Oracle and Walmart, was pursuing the acquisition as well.
Other potential buyers include Tesla CEO Elon Musk, MrBeast (Jimmy Donaldson), and former Blizzard-Activision CEO Bobby Kotick. Perplexity AI has proposed merging ByteDance with TikTok and New Capital Partners, allowing ByteDance investors to retain their equity.
