Trump Considers Tariff Reductions Linked to TikTok Deal Finalization

President Trump indicated the potential for tariff reductions on China if a TikTok deal is finalized. TikTok’s future is tied to President Trump’s approval for a sale to an American entity, with a critical deadline approaching on April 5. The President emphasized tariffs’ importance over TikTok, while Vice President Vance remains hopeful for a timely agreement.

President Donald Trump has indicated a willingness to reduce tariffs on China if a deal regarding TikTok is successfully finalized. TikTok, a popular application owned by ByteDance, boasts over 170 million users in the United States. Its future in the U.S. depends on President Trump approving either a partial sale or a complete divestiture to an American company. The deadline for ByteDance to either sell or ban TikTok in the U.S. is approaching on April 5, following a 75-day extension.

During a recent press conference at the Oval Office, President Trump announced a 25% tariff on foreign-made vehicles and discussed the TikTok negotiations. He expressed that China must play a significant role in these discussions, while emphasizing the greater importance of tariffs compared to TikTok. Trump remarked, “TikTok is big, but every point in tariffs is worth more than TikTok.”

U.S. Vice President JD Vance has expressed optimism about reaching a TikTok deal before the deadline; however, he acknowledged that finalizing the legal documents could take longer. Trump hopes that a preliminary agreement for TikTok could be established by April 5. Earlier, Vance indicated that an agreement could uphold national security while creating an American-based TikTok enterprise.

While the specifics of the TikTok deal negotiations remain confidential, Trump has previously suggested that any potential joint venture should include a 50% U.S. stake. Approval will be required from Trump, TikTok’s parent company, ByteDance, as well as the Chinese government. In the realm of social media investments, prominent stocks like Pinterest and Meta Platforms are currently favored by analysts, with Pinterest demonstrating higher potential returns based on research using the TipRanks Stock Comparison Tool.

In summary, President Trump’s suggested reduction of tariffs on China is contingent upon the successful negotiation of a TikTok deal, with implications for national security and market dynamics. The outcomes are pending as the April 5 deadline approaches, amidst considerations for U.S. ownership stakes in any potential joint ventures. The evolving landscape of social media investments is also highlighted, with specific stocks gaining analyst favor.

Original Source: markets.businessinsider.com