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U.S. President Donald Trump has given what he calls a ‘phenomenal’ offer that he may consider easing tariffs on Chinese imports if Beijing approves the sale of TikTok to a non-Chinese buyer, a move that could determine the app’s fate in the United States.
Speaking aboard Air Force One on Thursday, Trump said negotiations over TikTok’s ownership were nearing a resolution, with multiple investors involved. However, he also suggested that China’s approval of the deal could come with conditions, including potential tariff reductions.
“You have a situation with TikTok where China will probably say: ‘We’ll approve a deal, but will you do something on the tariffs?'” Trump stated. “The tariffs give us great power to negotiate.”
April 5 Deadline Looms for TikTok
The popular video-sharing platform faces an April 5 deadline to secure a non-Chinese buyer or risk being banned in the U.S. The move comes as part of legislation passed by Congress last year, aimed at addressing national security concerns over potential Chinese government influence on TikTok’s algorithm and access to American user data.
The White House has been working to finalize a deal that would satisfy both U.S. lawmakers and Beijing. The proposed agreement involves spinning off TikTok’s U.S. business into a new entity, with major American investors, including Andreessen Horowitz, Blackstone, Silver Lake, and others, expected to acquire about half of the company’s U.S. operations.
Existing investors such as General Atlantic, Susquehanna, KKR, and Coatue would retain a 30% stake, while ByteDance, TikTok’s parent company, would hold just under 20%—a figure aligned with U.S. laws restricting foreign adversary ownership to no more than one-fifth of a company.
Control Over TikTok’s Algorithm a Key Concern
One of the major sticking points in the negotiations is control over TikTok’s powerful algorithm, which dictates content recommendations and user engagement. According to sources familiar with the matter, one proposal under consideration would allow ByteDance to continue operating the algorithm while providing U.S. investors with access via a licensing agreement.
However, some U.S. lawmakers and national security experts argue that this approach does not go far enough in addressing security risks. They are pushing for full U.S. control over the algorithm, ensuring that it is operated independently of Chinese influence.
Trump’s Tariff Strategy and Its Implications
Trump’s latest comments come just a day after he announced a new round of tariffs on foreign imports, including a 34% tariff on Chinese goods, following an earlier 20% tariff hike. His administration has framed these tariffs as a tool for securing better trade deals and protecting American interests.
TikTok’s fate remains uncertain as the deadline approaches. While Trump claims the U.S. is “very close” to finalizing a deal, the outcome will depend on whether all parties, including the Chinese government can reach an agreement that satisfies both economic and national security concerns.
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