Trump Considers Tariff Cuts to Facilitate TikTok Sale Negotiations
Donald Trump has announced he may reduce tariffs on China to facilitate the sale of TikTok. He is willing to extend the April 5 deadline for finding a buyer. The sale is complicated by the need for Chinese government approval, with current tariffs on both sides affecting negotiations.
Former US President Donald Trump recently indicated that he might reduce tariffs on China to facilitate the sale of the TikTok application, owned by ByteDance. He expressed a willingness to postpone the April 5 deadline for securing a non-Chinese buyer for the platform. Earlier this year, Trump had delayed the enforcement of a law from the Biden administration aiming to ban TikTok over national security concerns.
Trump remarked, “With respect to TikTok, and China is going to have to play a role in that, possibly in the form of approval, maybe, and I think they’ll do that.” He also suggested the possibility of reducing tariffs as an incentive to finalize the deal. He expressed optimism that a preliminary agreement could be established by the upcoming deadline.
The primary challenge in concluding a TikTok sale, which carries a substantial valuation, lies in obtaining approval from the Chinese government. Trump has historically utilized tariffs as a tactic in negotiations, notably threatening increased tariffs on China if it did not approve the deal. TikTok boasts approximately 170 million users across the United States, emphasizing its significant market presence.
In addition, this month, the United States raised tariffs on all imports from China to 20%, effectively doubling previous rates set by Trump earlier this year. In retaliation, China imposed tariffs ranging from 10% to 15% on certain US agricultural exports and placed numerous US companies on an “unreliable entity list,” implementing strict export controls in the process. China has called for a return to diplomatic discussions with the US to resolve these ongoing trade issues.
In summary, Donald Trump has signified a potential reduction in tariffs on China to assist in the sale of TikTok, while also extending the deadline for finding a buyer. The negotiations face major hurdles, including the necessity of obtaining Chinese approval. The current state of tariffs and trade relations highlights the complexities and interdependencies of US-China relations, with both sides preparing for continued negotiations and potential retaliatory actions.
Original Source: www.bbc.com
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