Trump eyes tariff cuts to secure TikTok's American future
President Donald Trump is considering lowering tariffs on China to obtain Beijing's approval for the sale of TikTok to an American investor. According to the law, ByteDance has until 5th April to find a buyer outside of China; otherwise, the company will face a ban on operations in the USA, Bloomberg reports.
President Donald Trump suggested that he might reduce tariffs on China to secure Beijing's approval for the sale of TikTok, which is owned by ByteDance. Trump explained that "China will need to play a role," however, he expressed a willingness to negotiate.. The President added that he might offer China "a little reduction in tariffs or something to get it done."
TikTok, used by approximately 170 million Americans, is under particular scrutiny due to national security concerns. Washington fears that ByteDance, being reliant on the Chinese government, could use the app to collect data on U.S. users and engage in activities that influence public opinion, Bloomberg reports.
ByteDance has until 5th April to find a buyer outside of China, or it will be forced to cease operations in the USA. The process of selling TikTok has become crucial in negotiations, with China being the main obstacle to finalising the deal, Bloomberg notes. Trump has previously used tariffs as a bargaining tool to pressurise Beijing to agree to a TikTok deal.
According to the plan, ByteDance was supposed to sell its American operations by 19th January; however, Trump delayed the enforcement, allowing more time for negotiations. The White House is also involved in the talks, effectively acting as an investment bank by working with investors.
As Bloomberg notes, free speech advocates point to potential risks associated with banning TikTok, arguing that limiting access to foreign media could constitute a violation of the First Amendment to the U.S. Constitution.
Tariffs on cars
President Donald Trump announced on Wednesday that on 2nd April, he will impose a 25% tariff on all cars and light trucks imported from abroad. The previous rate was 2.5%.
— We'll effectively be charging a 25% tariff. But if you build your car in the United States, there is no tariff — said Donald Trump, announcing his decision in the Oval Office and signing the order on this matter.
The tariffs are set to take effect on 2nd April, along with "reciprocal tariffs," theoretically intended to balance tariff rates with those applied by other countries. Trump described this day as "America's liberation day."
Let us recall that on 1st February, Washington announced the imposition of a 10% tariff on Chinese imports, which - according to China’s Ministry of Commerce, "unilateral imposition of tariffs seriously violates the rules of the World Trade Organization."
