President Trump on Wednesday raised the possibility that he could relax steep upcoming tariffs on China in exchange for the country’s support on a deal to sell TikTok to a new owner supported by the United States.
Acknowledging that Beijing is “going to have to play a role” in any transaction, Mr. Trump signaled to reporters at the White House that he could be open to negotiation. “Maybe I’ll give them a little reduction in tariffs or something to get it done,” he said.
Under a law enacted before Mr. Trump took office, the Chinese-based parent company of TikTok must either sell the social media app’s U.S. operations or face what essentially amounts to a domestic ban. Lawmakers adopted that policy in response to growing, bipartisan concerns that the app posed threats to U.S. national security, which TikTok denies.
Congress originally set a January deadline for its ultimatum. But no sale occurred, prompting Mr. Trump — as one of his first executive actions — to delay enforcement of the law for 75 days in the hopes of securing a buyer.
The new deadline arrives on April 5, just three days after Mr. Trump separately plans to announce what he has described as “reciprocal” tariffs, imposing new duties on foreign nations based on the trade barriers that they erect to U.S. imports. The president has already subjected Chinese goods to a 20 percent tariff, on top of those he enacted during his first term in office.
“Every point in tariffs is worth more than TikTok,” Mr. Trump said about the prospects of a negotiation, adding: “Sounds like something I’d do.”
Mr. Trump on Wednesday said he could issue another order that grants the government additional time to find a buyer for TikTok, stressing the goal is an outcome “that’s best for our country.” The president has raised the possibility that the U.S. government could acquire a stake in the app.
”If it’s not finished, it’s not a big deal. We’ll extend it,” Mr. Trump said.
Chinese officials, for their part, maintain that any sale or divestiture must comply with local export laws, potentially giving Beijing power over any arrangement brokered by Mr. Trump.