Trump’s Ultimatum: TikTok Can Stay, But There’s a Catch
President Donald Trump announced that tariffs on China could depend on reaching a deal regarding the ownership of the popular TikTok app. Trump signed an executive order allowing TikTok to continue operating in the U.S. for an additional 75 days, providing more time to decide its future.
According to the Financial Times, Trump extended the original deadline for the Chinese parent company ByteDance to sell its U.S. operations. If ByteDance fails to comply, the app risks being banned in the United States.
Trump also stated that if TikTok continues to operate beyond the deadline, the U.S. should receive "half of its value." He warned that rejecting the deal could be considered a "hostile act," potentially leading to the imposition of tariffs on China.
The Threat of 100% Tariffs: Trump’s Hardball Negotiations
Trump hasn’t ruled out extreme measures, hinting that tariffs could rise to 100%. "If there’s no deal, we’ll impose tariffs on China," Trump declared while signing the order. However, he emphasized his preference for a negotiated solution.
The executive order also safeguards TikTok’s tech partners, such as Apple, Google, and Oracle, from penalties during the 75-day period. Under existing laws, these providers could face fines of up to $5,000 per user for hosting or distributing the app.
TikTok Briefly Offline, Quickly Restored
Due to legal disputes, TikTok was briefly taken offline but was quickly restored following assurances from the Trump administration. TikTok’s CEO, Shou Zi Chew, has been working diligently to ensure the app remains operational despite Trump’s public criticism.
Security and Manipulation Concerns
Some U.S. lawmakers and security experts fear that the Chinese government could use TikTok to spy on American users or manipulate the app's algorithm to influence its audience. TikTok, however, has repeatedly stated that the Chinese government has no influence over the app.
On the other hand, China has strongly opposed the forced sale of TikTok, and ByteDance has argued that selling the app within the given timeframe is impossible.
Could Musk Become a Mediator?
Despite the challenges, Trump insists that if TikTok continues operating in the U.S., half of its value should go to the U.S. government. Meanwhile, Chinese officials are reportedly considering using Elon Musk, who has close ties to Trump, as a mediator for TikTok’s U.S. operations.
Musk himself has weighed in on the issue, pointing out the imbalance in the situation: TikTok is allowed in the U.S., while his platform, X, is banned in China. "This needs to change," Musk stated.
China’s Reaction and TikTok’s Future
China has yet to issue an official response to Trump’s tariff threats. However, its foreign ministry emphasized that any decision on TikTok’s ownership should be based on "market principles" and left to the involved companies.
The future of TikTok in the U.S. remains uncertain, hinging on political and business decisions that could affect not only the app but also the broader U.S.-China relationship.
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