On Thursday, President Donald Trump said he might consider a deal involving TikTok in which China agrees to approve the sale of the video-sharing app, owned by ByteDance, in return for relief from U.S. tariffs on Chinese imports.
While speaking to reporters aboard Air Force One, Trump pointed to TikTok as an example of how tariffs can serve as a negotiation tool with other countries.
“You have a situation with TikTok where China will probably say: ‘We’ll approve a deal, but will you do something on the tariffs?'” Trump said. “We could use tariffs in order to get something in return.” TikTok has until April 5 to secure a deal with a non-Chinese buyer or face a ban in the U.S.
Trump also noted that his administration is “very close” to finalizing a deal on TikTok, with several investors involved.
His comments came just one day after announcing a baseline 10% tariff on all imports to the U.S., along with increased tariffs targeting some of the nation’s major trading partners. As a result, China is now subject to a 54% tariff rate on goods exported to the U.S. TikTok has yet to respond to requests for comment.
Following Trump’s announcement of the extensive new reciprocal tariffs—especially harsh on China and its key trading partners—China’s yuan dropped to its lowest level in seven weeks, and stock markets declined sharply on Thursday. Although investors had been anticipating the tariffs for the past week, the severity of Washington’s latest measures exceeded expectations.
