Trump's TikTok Deal: A Strategic Move Amidst Rising Tariffs with China

Trump's Olive Branch to China

Beijing/Washington: Following his frustration over China's imposition of a 34% tariff on U.S. exports, President Donald Trump has seemingly extended an olive branch to Beijing. He proposed a connection between the sale of the Chinese social media platform TikTok and a potential reduction in tariffs on Chinese goods entering the U.S.

Initially reacting with anger to China's tariff decision, Trump claimed that China is in a state of panic. He suggested a quid pro quo arrangement where tariffs could be lowered if TikTok is permitted to sell its U.S. operations to an American entity.

According to reports from the Hong Kong-based South China Morning Post, Trump indicated on Thursday that he might ease import duties if China cooperates with his TikTok strategy.

Previously, Trump had postponed the TikTok ban deadline by 75 days, linking its sale to negotiations regarding tariffs with China.

In a post on Truth Social, he stated, “My Administration has been working diligently on a Deal to SAVE TIKTOK, and we have made significant progress. The Deal requires further work to secure all necessary approvals, which is why I am signing an Executive Order to keep TikTok operational for an additional 75 days.”

Trump expressed hope for continued collaboration with China, acknowledging their dissatisfaction with the reciprocal tariffs he deemed necessary for fair trade between the two nations.

He emphasized the effectiveness of tariffs as a crucial economic tool, asserting their importance for national security. Trump stated, “We do not want TikTok to 'go dark.' We look forward to collaborating with TikTok and China to finalize the Deal.”

TikTok, which has 170 million users in the U.S., faced a temporary shutdown after the Biden administration's ban but resumed operations when Trump lifted the ban.

A ByteDance representative, TikTok's parent company, confirmed ongoing discussions with the U.S. government regarding a potential resolution for TikTok in the U.S., as reported by the state-run Global Times.

The representative noted that while discussions are ongoing, no agreement has been finalized, and any deal would require approval under Chinese law.

On Saturday, the Chinese government reiterated its stance against U.S. tariff practices, stating that the U.S. has imposed tariffs on all trading partners under various pretexts, infringing on the legitimate rights of nations and violating World Trade Organization rules.

The Chinese government condemned these actions, asserting that they disrupt the global economic order.

Currently, there has been no official response from Beijing regarding Trump's proposal, as the country observes the Qingming Festival, a time for honoring ancestors.

When asked about Trump's offer on March 27, a spokesperson for the Chinese Foreign Ministry emphasized that business operations and acquisitions should be determined independently by companies based on market principles, and any actions involving Chinese firms must comply with local laws.

Trump's proposal comes amid increasing concerns in the U.S. regarding China's tariffs, particularly as China imports approximately $30 billion worth of agricultural products from the U.S.

Reports indicate that Trump's tariffs have raised alarm among American farmers who rely heavily on exports to China.

Additionally, China has implemented immediate export controls on certain rare earth materials, over which it holds a near monopoly, impacting U.S. defense industries.

The Ministry of Commerce and General Administration of Customs in China announced that these export controls pertain to seven types of medium and heavy rare earths.

These measures, effective immediately, aim to protect national security and fulfill international obligations regarding non-proliferation.

Rare earth elements, a group of 17 metals, are essential for defense technologies, including missiles and military communications.

Tu Xinquan, dean of the China Institute for WTO Studies, remarked that such rapid and multifaceted countermeasures are unprecedented, indicating that China will not passively accept unilateral tariffs.

He stated, “This isn’t merely tit-for-tat. These countermeasures are designed to target the vulnerabilities of the U.S. to inflict real consequences.”

Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation, noted that as the world's second-largest economy, China is taking a proactive stance against U.S. trade protectionism.

He emphasized that these countermeasures are not only to protect China's interests but also to maintain the stability of the global trading system.