President Donald Trump stated that China’s objections to new US tariffs have stalled a potential deal to sell off TikTok and allow it to continue operating in the United States, as per Bloomberg.
Speaking to reporters aboard Air Force One, Trump said:
“We had a deal pretty much for TikTok — not a deal but pretty close — and then China changed the deal because of tariffs.” He further elaborated, “If I gave a little cut in tariffs they would have approved that deal in 15 minutes, which shows the power of tariffs.”
The Trump administration, including Vice President JD Vance and National Security Advisor Mike Waltz, has been actively working on an agreement to sell the popular social media app, owned by ByteDance Ltd., to an American buyer, as mandated by a bipartisan law passed in 2024. However, the plan requires approval from both the US and China.
According to reports, a deal was nearing completion prior to Trump’s announcement of widespread tariffs on Wednesday, with a consortium of US investors including Oracle Corp., Blackstone Inc., and Andreessen Horowitz poised to acquire TikTok. However, the agreement was never publicly announced, and Trump now claims that China’s objections related to the new tariffs have impeded the deal. The Washington Post previously reported that Trump’s decision to increase tariffs on China had stalled negotiations.
Trump’s recent order imposes an additional 34% tariff on China, adding to the 20% he had already levied earlier this year. In response, China announced on Friday that it would retaliate with its own 34% tariff on all imports from the US, effective April 10. Chinese authorities also announced plans to restrict exports of certain rare earth elements.
Trump has previously indicated his willingness to negotiate a tariff reduction with China in exchange for the country’s approval of a TikTok sale.
The 2024 law required ByteDance to divest TikTok’s US unit by January 19. However, the company has resisted selling the lucrative business, which has been valued at anywhere from $20 billion to as high as $150 billion. Trump previously extended the divest-or-ban requirement and signed another 75-day extension on Friday.
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