Sell TikTok to reach a deal on tariffs, Trump’s olive branch to China

It resumed operations after Trump temporarily withdrew the ban.

After expressing anger over China’s retaliation to his 34 per cent tariffs on US exports, US President Donald Trump appeared to offer an olive branch to Beijing — linking the sale of Chinese social media app TikTok to potential relief on high levies on Chinese exports to America.

After his initial outrage over Beijing’s move on Friday to impose reciprocal 34 per cent tariffs on US goods, Trump said China was “panicking.” At the same time, he proposed a quid pro quo: a reduction in tariffs if China allows TikTok to sell its US operations to an American buyer.

On Thursday, Trump suggested he may offer relief on import duties if China aligns with his TikTok plans, the Hong Kong-based South China Morning Post reported from Washington. He had earlier extended the deadline to ban TikTok by 75 days, linking the app’s sale to a broader trade deal with China.

“My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress. The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days,” Trump said in a post on Truth Social.

He added that his administration hoped to “continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!)”

“This proves that Tariffs are the most powerful Economic tool, and very important to our National Security! We do not want TikTok to ‘go dark.’ We look forward to working with TikTok and China to close the Deal,” he added.

The Chinese social media app, used by 170 million Americans, had gone dark temporarily after the Biden administration enforced a ban. It resumed operations after Trump temporarily withdrew the ban.

A representative of ByteDance, TikTok’s Chinese parent company, said in a statement that it had been in “discussion with the US Government regarding a potential solution for TikTok US,” according to state-run Global Times.

“An agreement has not been executed. There are key matters to be resolved. Any agreement will be subject to approval under Chinese law,” the statement said, suggesting any deal would require Beijing’s sign-off.

Meanwhile, the Chinese government issued a statement condemning the US use of tariffs. “Recently, under various pretexts, the United States has imposed tariffs on all trading partners, including China, which severely infringes upon the legitimate rights and interests of nations, severely violates World Trade Organisation rules, severely harms the rules-based multilateral trading system, and severely disrupts the stability of the global economic order. The Chinese government strongly condemns and firmly opposes this,” state-run Xinhua News Agency reported.

There has been no direct response to Trump’s proposal from Beijing, as China is currently observing the Qingming Festival (Tomb-Sweeping Day), a national holiday.

On March 27, when asked about Trump’s offer, Chinese Foreign Ministry spokesperson Guo Jiakun remarked that actions such as the operation and acquisition of businesses “should be independently decided by companies in accordance with market principles.” If Chinese companies are involved, their actions must comply with Chinese laws and regulations, Guo added.

Trump’s proposed deal comes amid growing anxiety in the US over Chinese tariffs, especially among American farmers who rely on bulk exports to China. China imports about $30 billion worth of agricultural produce annually from the US.

In a significant move, Beijing also announced immediate export control measures on several rare earth-related items, a sector in which it enjoys near-monopoly. These controls are expected to impact US defence industries.

China’s Ministry of Commerce and the General Administration of Customs said the export control measures would cover seven types of medium and heavy rare earths. The measures, which took effect immediately, are aimed at safeguarding national security and fulfilling international non-proliferation obligations.

Rare earth elements — a group of 17 metals — are critical in defence technologies, including missiles, lasers, tank-mounted systems, and military communication devices.

Commenting on the escalating US-China tariff war, Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics in Beijing, said, “Such rapid, intensive and multi-pronged countermeasures are unprecedented in world history, proving that China will not sit back amid unilateral bullying tariffs.”

“This isn’t just tit-for-tat. These countermeasures, including both tariff and non-tariff measures, aim to directly hit the weak spots of the US to make it feel the real pain,” Tu told China Daily.

Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation, added that China’s actions are both protective and strategic. “These countermeasures are not only to protect China’s own interests, but also to safeguard the stable operation of the global trading system,” he said.