Headline
Title: Trump Threatens Potential Consequences for TikTok Deal and China Tariffs - Beijing signals hesitation
President Trump Reverses TikTok Ban, Threatens Tariffs Over Platform's Future
Intro
After signing an executive order to postpone the TikTok ban, President Trump hinted at potential tariffs against China in response to their stance on a U.S. entity acquiring a majority share of the popular social media platform.
Key Points
- Executive Order: Trump delayed the TikTok ban for 75 days to assess the platform’s future, citing the possibility of imposing tariffs on China as a bargaining chip.
- Value Proposition: The president expressed his belief that the U.S. should secure at least 50% ownership of TikTok, mentioning the potential value of the platform, which he estimated to be a trillion dollars.
- Tariff Threat: Should Beijing block the deal, Trump threatened to impose tariffs of up to 100% on Chinese imports.
- Conflicting Statements: The confusion surrounding the president’s intentions arose from unclear language regarding whom he intended to effect a 50% stake in TikTok – the U.S. government or a U.S. company.
- Tariff Announcements: Although Trump didn’t issue tariffs-related executive orders on Monday, he hinted at potential tariffs against Canada and Mexico, and spoke about meeting with President Xi and potentially visiting China.
Background
Potential U.S. Control:
Uncertainty remains as to whether Trump wants the U.S. government to assume partial ownership of TikTok or if he intends to compel a 50% share for an American firm.
Tariff Proposal:
In November, Trump indicated that tariffs against China, Mexico, and Canada would be among the first executive orders he'd sign upon entering office. Although no tariffs-related orders were issued Monday, he suggested a 25% levy on imports from Canada and Mexico might take effect in February.
Chinese Approval Needed:
Given China's control over TikTok's algorithm, any sale or 50% stake transfer would require approval by the Chinese government.
China's Mixed Messages:
In the past, Beijing expressed its stance on rejecting any forced sale or transfer, but Chinese foreign ministry spokeswoman Mao Ning offered a softer tone, emphasizing the importance of market principles in corporate decisions.
*** Get Our Breaking News Text Alerts: Sign up for text alerts to stay updated on the latest headlines. Text “Alerts” to *(201) 335-0739 or sign up here.
Further Reading
- TikTok Ban Update: Trump Postpones Ban for 75 Days
TikTok's potential U.S. sale faces obstacles due to the possibility of China imposing tariffs, as mentioned by President Trump in response to China's stance on TikTok ownership. The president has expressed his desire for the U.S. to secure at least 50% ownership of TikTok, estimating its value to be a trillion dollars.
