Trump open to tariff cuts if TikTok deal reached with China

President Donald Trump announced on Wednesday that he might consider reducing tariffs on China if the Chinese government sanctions the sale of TikTok’s operations in the U.S.
In comments made to reporters at the Oval Office, Trump expressed that such an action “sounds like something I’d do.” This statement arises just weeks before the looming April deadline which mandates TikTok’s China-based parent company, ByteDance, to either divest its U.S. operations or face a ban within the country.
Since a legislative requirement for ByteDance’s divestment came into force on January 19, uncertainty has persisted regarding the future of the widely-used video-sharing app. Upon assuming office, Trump granted TikTok a 75-day grace period by signing an executive order that deferred the law’s enforcement till April 5.
Trump emphasized that the timeline for reaching a TikTok agreement could be pushed back further if necessary. He had earlier outlined a proposition allowing a 50% U.S. stake in a joint venture, though specifics of such an arrangement have not yet been disclosed by the administration.
Earlier this month, Vice President JD Vance voiced optimism that a deal to maintain TikTok’s operations in the U.S. would conclude by the early April deadline. Reports indicated that Vance did not specify potential buyers but acknowledged some obstacles might defer a conclusive agreement beyond the given timeframe.
“We’d like to get it done without the extension,” Vance conveyed to the press. “The key questions involve the equity structure of the new joint venture, drafting contracts for investors, customers, service providers… while the deal’s principle will be clear, the comprehensive legal documentation worries me as the factor that could cause delays.”
TikTok and ByteDance have remained silent regarding these discussions. Moreover, it remains uncertain whether ByteDance has shifted its stance on selling TikTok, having previously declared no intention to do so last year.
What is the scenario for April 5?
Should TikTok not be sold to an authorized buyer by April 5, the original legislative ban would be reactivated across the nation. Nonetheless, the deadline related to the executive mandate is seemingly flexible, as the president has reaffirmed the possibility of further extensions if required.
Trump’s order was issued shortly after the Supreme Court unanimously upheld a federal law mandating ByteDance’s divestment by January. Following the court’s decision, TikTok momentarily went offline for U.S. users, returning only after Trump pledged to delay the ban.
During his first administration, Trump sought to ban TikTok on grounds of national security, a move halted by legal challenges before any successful negotiation of its sale. Last year, Trump’s stance on the platform evolved, recognizing it as a tool in gaining younger voters during the presidential election.
The decision to preserve TikTok through executive action has faced some scrutiny but remains unchallenged in court.
Who are the interested buyers for TikTok?
While ByteDance’s intent to sell TikTok is unclear, multiple potential buyers have emerged over the previous months.
Deputy Vice President Vance’s aides, charged with overseeing a potential deal, have approached parties including artificial intelligence company Perplexity AI, exploring details of their proposals, as per an informed source. In January, Perplexity AI proposed a merger with TikTok’s U.S. operations to ByteDance.
Another interested party consists of a consortium led by billionaire Frank McCourt, having recently enlisted Reddit co-founder Alexis Ohanian as a strategic advisor. Investors in this group have proposed $20 billion in cash for TikTok’s U.S. division, with plans to revamp the app using blockchain technology to grant users greater control over their data.
Jesse Tinsley, the founder of Employer.com, has also formed a consortium including Roblox’s CEO, offering ByteDance upwards of $30 billion for TikTok.
In January, Trump noted that Microsoft was among those interested in the platform. Other parties showing interest include former Treasury Secretary Steve Mnuchin and Rumble, a video platform favored by conservative and far-right users. Rumble indicated its readiness to join a consortium interested in acquiring TikTok and potentially serving as a tech associate.