TikTok Sale: Trump Hints At Tariff Reduction To Seal The Deal. What We Know So Far
Under a law passed in 2024 with bipartisan support, ByteDance was initially required to divest TikTok by January 19.
US President Donald Trump has indicated that he may consider lowering tariffs on China as part of efforts to finalise a deal over the sale of TikTok, the widely popular short-video platform owned by Beijing-based ByteDance. The announcement comes as ByteDance races against an April 5 deadline to divest TikTok to a non-Chinese entity or face a nationwide ban in the United States.
Tariffs as a Bargaining Chip
Speaking to reporters on Wednesday, Trump acknowledged that China’s approval would be crucial in getting the deal done. He suggested that a tariff reduction could be part of the negotiations to facilitate the process.
"With respect to TikTok, and 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. Maybe I'll give them a little reduction in tariffs or something to get it done," Trump said.
While TikTok has yet to comment on Trump's latest remarks, the possibility of tariff relief adds a new dimension to the already complex discussions surrounding the platform’s future.
Deadline Pressure and Potential Extensions
Under a law passed in 2024 with bipartisan support, ByteDance was initially required to divest TikTok by January 19. However, after Trump took office, he issued an executive order delaying the enforcement of the ban to April 5. Now, he has signaled that he may further extend the deadline if necessary to ensure a deal is reached.
“The future of the app, which is used by nearly half of all Americans, has been in limbo for months,” said analysts tracking the situation. The Supreme Court had briefly upheld a ban in January, leading to TikTok going dark before it was swiftly restored under Trump’s administration.
High-Stakes Negotiations
The US government has taken an unusually hands-on approach in discussions surrounding TikTok’s fate, playing a role more akin to an investment bank than a regulatory authority. Vice President JD Vance has expressed optimism that a resolution over TikTok’s ownership structure will be reached by the looming April deadline.
Adding to the pressure, Trump has leveraged tariffs in past negotiations with China, warning as early as January 20 — his first day in office — that he would impose tariffs if Beijing did not cooperate with US efforts to restructure TikTok’s ownership. Earlier this month, his administration raised tariffs on all Chinese imports to 20%, up from the 10% imposed in February.
As the deadline nears, all eyes remain on the White House, Beijing, and ByteDance to see whether a breakthrough will be reached — or if TikTok will once again face the threat of a nationwide ban.
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