Trump Considers Tariff Cuts to Aid TikTok U.S. Sale

U.S. President Donald Trump has indicated that he may offer China a reduction in tariffs to facilitate a deal for the sale of TikTok’s U.S. operations.

Speaking at a press conference, Trump acknowledged that China’s approval might be necessary for the transaction, suggesting that a tariff reduction could serve as an incentive.

TikTok’s Chinese parent company, ByteDance, faces an April 5 deadline to divest its U.S. operations or risk a nationwide ban under legislation passed in 2024. While the former president previously backed efforts to ban TikTok, he has recently softened his stance, citing the app’s popularity among American users and the significant interest from potential buyers.

Also Read: TikTok Sale: AI Startup Perplexity Expresses Interest in Acquisition

Several parties have expressed interest in acquiring TikTok’s U.S. arm, including former Treasury Secretary Steve Mnuchin, Reddit co-founder Alexis Ohanian, AI startup Perplexity AI, and a consortium led by billionaire Frank McCourt. However, negotiations remain ongoing, and the final outcome is uncertain.

The issue has emerged against the backdrop of ongoing trade tensions between the U.S. and China, with both nations having imposed significant tariffs on each other’s goods.

Trump’s suggestion of a tariff reduction in exchange for facilitating the TikTok deal highlights the complex interplay between trade policies and international business transactions. ​

Trump’s suggestion of a tariff reprieve highlights the complex intersection of trade policies, technology, and national security concerns in the U.S.-China relationship.