Trump threatens China with tariffs of up to 100% if TikTok deal is rejected

Future US tariffs on China may depend on the TikTok ownership deal. The new US President Donald Trump said that American companies should get a 50% stake in the video app TikTok so that it can continue to operate in the United States.

Transmits of the UNN with reference to of the FT.

Details

Within hours of his inauguration on Monday, Trump postponed a deadline requiring TikTok's Chinese parent company, ByteDance, to sell its stake in the app or face a ban in the country.

Trump said that the United States "should be entitled to half of TikTok" if the app continues to operate after this deadline. The US president is ready to "definitely" impose tariffs on China if Beijing rejects the TikTok deal.

Trump emphasized that tariffs could reach 100%.

"Ultimately [Beijing] will approve it because we would impose tariffs on China.I'm not saying I would, but you certainly could," Trump said while signing the order. 

On Monday, Trump said he could impose 25% tariffs on Canada and Mexico starting February 1, 2025.

However, the newly elected White House President did not impose a 60% tariff on Chinese imports, as he promised during the campaign.

The move to postpone tariffs against China appears to have been a bargaining chip for the TikTok deal. Trump spoke with Chinese leader Xi Jinping on Friday and said he had raised the issue of TikTok, although Beijing did not confirm the discussion.

Addendum

China on Tuesday asked the United States to ‘listen to the voice of reason’ and provide a ‘fair business environment’ after US President-elect Donald Trump said he would like to see his country own a 50% stake in video app TikTok.

At a press conference, Chinese Foreign Ministry spokesperson Guo Jiakun said that TikTok ‘has been operating in the United States for many years, and is loved by American users.

Guo argued that ‘decisions on business operations and acquisitions should be made by enterprises themselves in accordance with market principles’.

If Chinese companies participate, they must abide by Chinese laws and regulations, the Beijing official added.

Recall

US President Donald Trump on Monday, as promised, signed an executive order postponing the ban on TikTok for 75 days.

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