Trump Nearly Finalized TikTok Agreement with China, But Tariff Hike Caused a Reversal

Former President Donald Trump revealed that he was on the verge of securing a deal with China concerning the sale of TikTok. However, this potential agreement was derailed after he introduced significant tariffs.

Trump shared with journalists aboard Air Force One that they had almost finalized the TikTok transaction, suggesting that China's sudden change was a reaction to the announced tariffs. He commented, "Just a minor tariff reduction could have sealed the deal swiftly, demonstrating the influence tariffs hold."

Following this, Trump declared his intent to prolong the period allotted for TikTok's divestment. He planned to issue an executive mandate granting ByteDance, the parent company in China, an additional 75 days to either sell its portion or face a ban in the United States.

"Ensuring TikTok does not fade away is our aim," Trump stated on Truth Social, emphasizing his willingness to collaborate with the app and Chinese officials to finalize the arrangement.

Throughout his presidency, Trump leveraged tariffs as a tactical measure against China, intending to expedite favorable outcomes concerning TikTok.

In a related context, after raising China's tariff to 54%, Trump signified openness to renegotiating such tariffs, contingent on countries offering the U.S. exceptionally favorable terms. As an illustration, he stated China would likely agree to the TikTok deal if tariff adjustments were made.

Earlier, Trump hinted at a possible slight tariff concession with China to expedite the TikTok deal conclusion. This statement was made on March 26, highlighting his strategic approach.

In response to the increased U.S. tariffs, Beijing countered by instituting its own tariffs on American products the same week.

Rejecting the raised tariffs, China's Commerce Ministry committed to employing all necessary measures to protect its national interests.

Initially, the deadline for TikTok's divestment had been extended by Trump upon assuming office. ByteDance was allocated until early April to devise a strategy. The app faced a temporary blackout for American users but was subsequently restored.

Different buyers have signified interest in acquiring TikTok, including notable figures like former Treasury Secretary Steve Mnuchin, Reddit's Alexis Ohanian, ex-Dodgers owner Frank McCourt, and popular YouTuber MrBeast.

There was no immediate response from TikTok, the Chinese diplomatic mission in Washington, or Trump's team regarding queries from Business Insider.