Trump Considers Lowering China Tariffs for TikTok Sale Compliance
President Trump may reduce tariffs on China if it facilitates a sale of TikTok. The platform has a deadline of April 5 to divest from its Chinese parent company, ByteDance. Trump indicates possible tariff concessions and emphasizes the importance of a compliant and successful deal for the U.S. amidst broader trade tensions with China.
President Donald Trump has implied that tariffs on China may be reduced if it aids in facilitating a sale of TikTok to a U.S. buyer, following a law that requires ByteDance, its Chinese parent company, to divest from the platform or cease operations in the U.S. Under this law, TikTok had a deadline until April 5 to comply.
During a briefing at the White House, President Trump emphasized the need for a solution that prioritizes the interests of the United States, remarking, “I think they’ll do that. Maybe I’ll give them a little reduction in tariffs or something to get it done.” He indicated that the significance of any tariff reduction is overshadowed by the value of TikTok.
The Protecting Americans from Foreign Adversary Controlled Applications Act, passed by Congress last April, necessitates TikTok to find an American buyer or face removal from U.S. app stores. TikTok’s initial deadline elapsed in January without a deal, prompting Trump to issue an executive order extending the deadline to April 5, coinciding with his anticipated tariff announcements.
Should there be no finalized deal by the deadline, Trump has indicated that an extension is possible, stating, “We will have a form of a deal… If it’s not finished, it’s not a big deal. We’ll just extend it.” He previously supported the idea of Elon Musk or Oracle’s Larry Ellison acquiring the app. Recent developments included a new 10% tariff on U.S. imports from China, highlighting ongoing trade tensions.
In summary, President Trump has suggested the possibility of lowering tariffs on China as a negotiation tool to expedite TikTok’s sale to a U.S. buyer, a requirement under current legislation. The deadline is set for April 5, with options for extension should negotiations remain ongoing. The scenario underscores the intertwining of technology, commerce, and international relations in contemporary policy discussions.
Original Source: www.foxbusiness.com
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