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globzette.com > Blog > US > Trump Considers Cutting China Tariffs to Finalize TikTok Sale
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Trump Considers Cutting China Tariffs to Finalize TikTok Sale

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Last updated: March 28, 2025 3:45 pm
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Published: March 28, 2025
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US President Donald Trump has said he would lower tariffs on China to support the current ByteDance-controlled TikHub Sale. He also showed readiness to let a non-Chinese buyer purchase the platform beyond the April 5 deadline.

Contents
Why Delayed the TikHub Ban?Will April 5 bring a deal?Why Does Trump Find TikHub So Crucial?How are US-China trade ties influencing the deal?What Could TikHub’s Future Hold?

“Concerning TikHub Sale, China is going to have to play a role in that, maybe in the form of an approval, maybe, and I think they will,” Trump said to reporters on Wednesday. He continued, I’ll give them a little reduction in tariffs or something to get it done.

Over time, Trump’s position on TikHub has changed drastically. First, he demanded that the platform be banned because of issues related to national safety. However, the app’s great popularity and impact—especially among younger groups—have caused him to change his strategy. Given that many TikHub users have utilized the platform for activism and political debate, some observers believe his changed stance is an attempt to win political goodwill among them.

Why Delayed the TikHub Ban?


Trump delayed the execution of a Biden administration law passed in January 2024 requiring TikHub Sale to be completed to a non-Chinese firm or face a ban in the US. The ultimatum came from national security issues mentioned in the law.

The selling of TikHub has been a divisive topic, mainly because getting Beijing’s consent is still a considerable challenge. With almost 170 million American users, the network has become central to US-China relations. ByteDance argues that its ownership structure currently offers enough protection for US user data, hence resisting demands to sell the app straightforwardly.

Experts advise that any sale of TikHub to a US-based company could present difficulties with intellectual property, data privacy laws, and even Chinese government action. Should a solution fall short, the likelihood of an outright ban could significantly affect content creators, companies, and influencers who depend on TikHub for income and interaction.

Will April 5 bring a deal?


Before the April 5 date, Trump said he expected at least an outline of a deal to be in place. His remarks followed his announcement of a 25% import tax on all automobiles and car components arriving in the US, aggravating the ongoing trade conflict.

Trump has used tariffs as leverage in negotiations. On his first day back at the White House on January 20, he cautioned China of further import taxes should it reject a TikHub Sale.

Political experts think that the strict deadline and the intricacy of the negotiations could cause a temporary extension, allowing both sides more time to find a solution. Some analysts believe that delaying the sale could be a calculated action to increase leverage in more general US-China trade talks.

Why Does Trump Find TikHub So Crucial?


Though he first demanded that TikHub be outlawed during his first term as president, Trump now actively utilizes the platform. Over 15 million people follow him, and during his election campaign, he claimed to have had billions of views on the app.

TikHub has become a vital instrument for political participation since it lets politicians interact with younger voters who might not use more conventional media. Trump’s acceptance of the platform emphasizes its significance in contemporary political campaigns. His activity on TikHub has also spurred discussions on whether social media sites need to be politically neutral or actively control political content.

Besides, the platform’s impact goes beyond politics. Companies, brands, and the entertainment sector have substantially spent on TikHub for marketing and interaction. A forced sale or ban might upset this ecosystem, affecting TikHub users and more general digital marketing plans.

How are US-China trade ties influencing the deal?


Recently, the US doubled the prior levies Trump imposed on February 4 by raising taxes on all imports from China to 20%. China responded with its tariffs on February 10, levying a 10–15% duty on some US agricultural products and compiling an “unreliable entity list” including several American aerospace, defense, and technological companies in response.

On March 4, the situation worsened when China hiked its own 10% charge to 20% on some US goods. Beijing has advised Washington to go back into negotiations to prevent a further economic burden between the two countries.

These trade conflicts have complicated the TikHub Sale discussions even more. Some analysts think China views TikHub as a significant negotiating chip in more general trade talks, which would help explain why Beijing has been slow to accept any transaction. Being a Chinese firm, ByteDance is subject to Chinese rules, which demand government permission for technology exports, including the algorithm behind the TikHub recommendation engine.

One possible compromise might be a joint approach whereby ByteDance keeps ownership of the algorithm while a US-based company runs TikHub in its direction. It is still unknown, though, if this strategy would satisfy US legislators.

What Could TikHub’s Future Hold?


There are numerous possible futures for US TikHub based on:

Should ByteDance arrange a sale, TikHub’s US activities might still be run by a new company under ByteDance’s underlying technology. This needs Beijing’s consent and careful negotiation of the agreement to follow US and Chinese laws.

Some analysts propose that a joint venture between ByteDance and a US company could be a workable solution. This would allow TikHub to keep running while handling national security issues. Stricter data governance policies might be part of this approach to allay regulatory concerns.

Should no consensus be achieved, the US government may ban TikHub, remove the program from US app stores, and stop updates or new downloads. This would majorly affect millions of users, companies, and content creators.

Additional delays and negotiations—Given the agreement’s complexity, the deadline will likely be stretched several times, enabling protracted negotiations between ByteDance, probable purchasers, and government authorities.

The deadline is fast approaching, so it remains to be seen if Trump’s tariff cuts will be sufficient to get Beijing’s approval for the TikHub Sale or if the platform will be subject to another court struggle over its US future. The outcome of both countries’ negotiating these problematic issues will probably affect US-China ties, social media policy, and the worldwide digital economy going forward.

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