Trump has insisted that American firms should receive a 50% stake in TikTok for the app to continue operating in the United States. He warned that if China refuses to comply, he is prepared to impose steep tariffs on Chinese imports.
The newly elected U.S. president postponed a previous deadline requiring ByteDance, TikTok’s Chinese parent company, to sell its stake or face a ban. Trump stated that the U.S. “should be entitled to half of TikTok” for it to remain operational and signaled that tariffs could reach 100% if China rejects the deal.
During the signing of an executive order, Trump said Beijing would likely approve the deal due to the potential economic consequences. He hinted at possible tariffs but did not confirm a specific course of action.
Additionally, Trump mentioned the possibility of a 25% tariff on Canada and Mexico starting February 1, 2025. However, he did not impose the 60% tariff on Chinese imports that he had previously pledged during his campaign.
The suspension of tariffs on China appears to be a strategic move in negotiations over TikTok’s ownership. Trump recently spoke with Chinese President Xi Jinping and claimed to have raised the issue, though Chinese officials did not confirm the discussion.
In response, China urged the U.S. to “listen to the voice of reason” and create a fair business environment. At a press conference, Chinese Foreign Ministry spokesperson Guo Jiakun emphasized TikTok’s longstanding presence in the U.S. and its popularity among American users. He stated that business decisions should be made in line with market principles and that Chinese enterprises must adhere to local regulations.
Trump signed an executive order delaying TikTok’s ban for 75 days, allowing more time for negotiations.
