US uses tariffs to bargain with China to sell TikTok

Under a 2024 law that takes effect in January 2025, ByteDance faces an April 5 deadline to find a non-Chinese buyer for TikTok or the app will be banned in the US on national security grounds.

US President Donald Trump is willing to reduce tariffs on China to allow ByteDance to sell TikTok.

The legislation stems from concerns in Washington that TikTok's ownership by ByteDance puts the app under the control of the Chinese government, which Beijing could use to conduct influence operations against the United States and collect data on Americans.

Mr Trump said he was willing to extend the deadline beyond April 5 if a deal on the social media app was not reached. He acknowledged China's role in completing any deal, including the need for approval from Beijing, and said: "Maybe I'll lower the tariffs a little bit or something to get it done," Mr Trump told reporters.

President Donald Trump’s remarks suggest that the sale of TikTok is a priority for the administration and important enough to use tariffs as a bargaining chip with Beijing. In February and earlier this month, Trump imposed a 20% tariff on top of existing tariffs on all imports from China.

Getting China to agree to relinquish control of a business worth tens of billions of dollars was always going to be the biggest hurdle to completing any deal. Trump has used tariffs as a negotiating tool in previous TikTok negotiations. On January 20, his first day in office, he warned that he could impose tariffs on China if Beijing did not approve a US deal with TikTok.

Vice President JD Vance said he expects the general terms of a deal to resolve ownership of the social media platform to be agreed upon by April 5.

Last week, several sources revealed that White House-led talks between investors were forming a plan for ByteDance’s largest non-Chinese shareholders to increase their stakes and buy TikTok’s U.S. operations.

The future of the app, used by nearly half of the US population, has been uncertain since a law passed with overwhelming bipartisan support required ByteDance to divest TikTok by January 19. The app was suspended in January, when the US Supreme Court upheld the ban, but was back up and running days after Trump took office.

Mr Trump quickly issued an executive order delaying the law until April 5, and last month said he might extend the deadline to allow time to negotiate a deal. The White House has been involved in the negotiations on the closely watched deal to an unprecedented extent, almost taking on the role of an investment bank.

Free speech advocates argue that the ban threatens to illegally restrict Americans' access to foreign media, violating the First Amendment of the US Constitution.

Source: https://www.baogiaothong.vn/my-dung-con-bai-thue-quan-mac-ca-trung-quoc-ban-tiktok-192250327102747239.htm