Trump Hints at Tariff Reductions to Facilitate TikTok Deal with China

Trump Hints at Tariff Reductions to Facilitate TikTok Deal with China

President Donald Trump hinted at a potential tariff reduction on Chinese goods as a means to facilitate a deal with Beijing regarding the sale of TikTok. Speaking to journalists at the White House on Wednesday, Trump suggested that a slight relaxation in trade barriers could be the key to securing China's approval for the popular social media app's divestment.

Trump emphasized his willingness to push back the looming April deadline if a resolution remains elusive, underscoring China's pivotal role in greenlighting any potential agreement. "Maybe I'll give them a little reduction in tariffs or something to get it done," the president remarked, hinting at the use of trade concessions as leverage.

The ongoing discussions stem from U.S. concerns over TikTok's Chinese ownership, which lawmakers believe could enable Beijing to conduct influence campaigns and collect data on American users. This marks the latest instance of the administration leveraging tariffs in talks surrounding TikTok’s ownership.

In February, Trump increased tariffs on all Chinese imports by 20%, adding further weight to the negotiations.

Negotiations remain complex, as China’s approval is necessary for the divestment of TikTok, a business valued in the tens of billions of dollars. While the company has yet to comment, Trump’s willingness to use tariff reductions as leverage underscores the administration’s priority to finalize the deal.

The White House has been involved to an unprecedented level in the closely watched deal talks, effectively playing the role of investment bank.

Free speech advocates have argued that the ban unlawfully threatens to restrict Americans from accessing foreign media in violation of the First Amendment of the U.S. Constitution.

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Trump Hints at Tariff Reductions to Facilitate TikTok Deal with China - PMFinancials - Trusted Forex Trading Platform