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President Donald Trump has indicated that China could receive relief from U.S. tariffs if it approves a deal for ByteDance to divest TikTok’s U.S. operations. The statement comes as TikTok faces an April 5 deadline to find a non-Chinese buyer or risk being banned in the United States.
Speaking aboard Air Force One, Trump said, “You have a situation with TikTok where China will probably say: ‘We’ll approve a deal, but will you do something on the tariffs?’” He emphasized that tariffs provide the U.S. with strong leverage in negotiations.
The remarks follow Trump’s recent decision to impose a 10% baseline tariff on all U.S. imports and higher duties on major trading partners, including a 54% tariff on Chinese goods. The possibility of using TikTok’s sale as a bargaining chip underscores the administration’s broader trade strategy.
Trump stated that negotiations regarding TikTok’s sale are “very close” to completion, with multiple investors involved. The proposed structure would see ByteDance reducing its stake below 20%, aligning with U.S. regulations limiting foreign ownership of technology companies. Key U.S. investors, including Andreessen Horowitz, Blackstone, and Silver Lake, are reportedly considering stakes in the new entity.
However, a key issue in the negotiations is the control of TikTok’s algorithm. While discussions suggest that ByteDance may retain the algorithm and license it to the new U.S. entity, some lawmakers argue that full American control is necessary to address national security concerns.
Political and Security Challenges
Congress previously passed legislation requiring ByteDance to divest TikTok due to concerns over potential Chinese government influence and data security risks. Security officials worry that TikTok’s algorithm could be manipulated or that user data could be accessed by Beijing.
The White House has been in talks with Republican lawmakers, ByteDance representatives, and potential investors to finalize a deal. Vice President JD Vance recently stated that an agreement would be announced before the deadline.
Future Implications
If China agrees to the divestment, it could pave the way for a reduction in trade tensions between the two nations. However, the fate of TikTok remains uncertain, as the Chinese government has previously resisted pressure to allow the sale of one of its most valuable technology assets.
While Trump’s strategy leverages trade tariffs as a negotiation tool, it remains to be seen whether both U.S. and Chinese stakeholders will find common ground before the deadline.
