Trump Warns Fate of TikTok Deal Could Impact China Tariffs—Beijing Signals It May Not Block Sale

The latest twist in the saga comes with President Donald Trump signing an executive order on January 20, 2025, putting the ban on TikTok on ice for 75 days. The freeze gives the Trump administration the time to make decisions regarding the future of the platform. Trump has tied his stand to a broader bargaining with China: he has already gone for tariffs, and threatened that the U.S. will propose significant tariffs on Chinese products in case the Chinese administration cancels a prospective deal wherein at least 50% of the social media app TikTok is sold to an American company.

Key Takeaways:

1. Executive Order on TikTok: Trump executes an executive order to delay banning TikTok as he waits for a decision as to what happens with the application in the U.S. already said if the United States moves ahead on the TikTok deal then it should get the clearance from China, else Chinese imports would come with tariffs in between 25% and 100%.
2. He has used tariffs as a bargaining chip: He has also projected that if Beijing does not agree to vet the deal, he would impose severe tariffs on China, which would immediately affect the current trade relationship between the two nations.
3. Value of TikTok: Trump said it could be worth as much as a trillion dollars if a joint venture with the U.S. were formed, meaning that a deal could benefit both countries. However, details on the very structure of the deal, whether the U.S. government would own a piece of TikTok, remain unclear.
4. China's Reaction: In all reality, Chinese authorities were not very keen on having a forced sale of TikTok and were alarmed by its algorithm, coupled with export control regulations. Until now, a milder tone appears to come out from Beijing. For one, the People's Republic of China, through its mouthpiece in Mao Ning, mentioned that corporate mergers and acquisitions must rest upon market-oriented principles, indicating a more surrendering approach toward it.
5. Uncertainty of U.S.-China Relations: Related is the uncertainty around U.S.-China relations-its future about trade and tech, under uncertainty. Though the President said that he may go and meet the President Xi himself, he does agree to meet him at Beijing. Regarding Chinese application Tik-Tok and such other matters that pertain to the world of tech, remains uncertain.

In the following 75 days, changes are bound to happen; such things will have tremendous implications on the U.S.-China trade relations, the tech industry, and the future of TikTok in the global market.