Trump offers China tariff relief in exchange for TikTok sale approval
Kyiv • UNN
The US President hinted that he is ready to make concessions on tariffs if China allows ByteDance to sell TikTok. The Trump administration is close to a deal with investors.
US President Donald Trump suggested he might lower tariffs on Chinese goods if Beijing allows ByteDance, the Chinese owner of TikTok, to give up the extremely popular video-sharing app to avoid a ban in the US, UNN writes, citing the Financial Times.
Details
"We have a situation with TikTok where China will supposedly say we'll approve the deal, but will you do something about tariffs," Trump said aboard Air Force One. "Tariffs give us great negotiating power."
The comments came a day after Trump imposed "reciprocal" tariffs on dozens of countries, including a 34 percent tariff on imports from China, following a 20 percent tariff he imposed earlier this year.
Trump also said his administration is "very close" to reaching an agreement with "many investors" that would allow TikTok to continue operating in the US.
"We are very close to a deal with a very good group of people," Trump said.
Earlier on Thursday, Vice President Jay Dee Vance told Fox News that the deal "will be out by the deadline."
The White House held talks this week to determine the contours of a deal that would be pleasing to Republicans, as well as ByteDance and the Chinese government, which would have to give its blessing.
The administration has been considering a proposal to separate TikTok from its Chinese parent company. According to several people familiar with the matter, this would create a new American legal entity and include new American investment to dilute the ownership stakes of Chinese investors.
Under the proposal, new outside investors, including Andreessen Horowitz, Blackstone, Silver Lake and other large private companies, would own approximately half of TikTok's American business, people say.
Large existing TikTok investors, including General Atlantic, Susquehanna, KKR and Coatue, would own 30 percent of the US company, while ByteDance would retain a stake of just under 20 percent.
This would meet the requirements of US law that no more than one-fifth of the company can be controlled by a "foreign adversary." Oracle, meanwhile, would ensure the security of the company's data.
But one of the main questions is who will control TikTok's in-demand algorithm. One option under discussion was that ByteDance would continue to develop and operate the algorithm - which was a central demand of the Chinese government - while the new American group would be able to access it through a licensing agreement, people say.
However, China "hawks" and legal scholars argue that the algorithm should be fully managed by a US entity to comply with legal requirements. Several members of the Trump administration, including US Secretary of State Marco Rubio and White House National Security Advisor Mike Waltz, have been staunch opponents of allowing China to retain control over the app when they served in Congress.
Addition
Last year, Congress passed legislation requiring ByteDance to give up the app or face a nationwide ban. Trump extended the deadline to April 5.
