BREAKINGON

TikTok Deal in Jeopardy as China Demands Tariff Negotiations

4/5/2025
The White House was poised to announce a TikTok deal when China insisted on tariff discussions first, derailing negotiations and extending the ban deadline.
TikTok Deal in Jeopardy as China Demands Tariff Negotiations
China's demand for tariff negotiations has derailed TikTok's proposed deal with the U.S. government, raising concerns over national security and trade.

The TikTok Deal: A Rollercoaster of Negotiations

This week, the White House was poised to unveil a significant proposal regarding the popular video app, TikTok. However, just hours before the announcement, the plans were thwarted by the Chinese government, which insisted on discussing President Donald Trump’s tariffs and trade policies before agreeing to any deal. Sources close to the negotiations revealed that the White House and TikTok’s parent company, ByteDance, had reached a preliminary agreement, which was set to be announced on Thursday. Unfortunately, ByteDance informed the administration that any further discussions would require prior negotiations about tariffs.

Escalating Tariffs and Trade Tensions

The situation escalated when President Trump announced a staggering 34 percent tariff on Chinese imports, prompting China to retaliate with identical tariffs on American goods. The State Council of China condemned what it described as “unilateral bullying” by the United States, claiming that such actions had severely damaged China’s legitimate rights and interests. This dramatic turn of events dashed the Trump administration's hopes of swiftly resolving TikTok's future in the U.S. market.

Deadline Extension and Negotiation Challenges

In light of these developments, President Trump signed an executive order extending the deadline for TikTok’s potential ban by another 75 days. This extension raised questions about the ability of negotiators to finalize what had been described as a takeover deal. The unraveling of these negotiations highlighted the far-reaching consequences of Trump's tariffs, which have already affected stock markets, strained international alliances, and caused upheaval within corporate environments.

As the situation evolves, countries—including China—are seeking ways to retaliate against U.S. policies, particularly targeting tech companies and American investors who were eager to participate in the TikTok deal. Trump expressed optimism about the negotiations, stating that his administration had made “tremendous progress” toward a deal that would “save TikTok” from a legally mandated ban set to take effect that weekend.

ByteDance's Stance and Congressional Concerns

ByteDance has confirmed that discussions with the U.S. government are ongoing regarding a potential solution for TikTok. However, they emphasized that “an agreement has not been executed” and that key matters still require resolution, which will also be subject to Chinese law. While Trump claimed that the administration was close to finalizing a deal, a bipartisan majority in Congress had previously voted to force ByteDance to either sell the app or face a ban due to concerns over national security and user data privacy.

Despite a Supreme Court ruling upholding the law mandating these actions, Trump’s executive order allowed TikTok to continue operating for 75 days, aiming to pursue a resolution beyond a ban. It is important to note that executive orders cannot override existing laws, leading some lawmakers to argue that Trump’s move was insufficient to halt the law’s enforcement.

The Broader Implications of Trade Negotiations

The complexity of the TikTok negotiations is underscored by the involvement of top investment firms, Oracle, ByteDance, and the Chinese government. Trump hinted at the possibility of including the TikTok sale in broader trade discussions with China amid the escalating trade war. He stated, “I’m a very flexible person,” indicating a willingness to negotiate aspects of the tariffs if it could lead to an agreement.

This situation illustrates a convoluted saga that began when Trump sought to ban TikTok in 2020 but later vowed to “save” the app, which he believed played a crucial role in his outreach to younger voters during his presidential campaign. While Trump defended TikTok against criticisms regarding national security threats, some lawmakers, including Senator Mark R. Warner (D-Virginia), have expressed grave concerns about the app’s future being leveraged as a bargaining chip in trade negotiations with China.

Warner stated that discussing national security in the context of tariff negotiations is troubling, emphasizing that decisions regarding TikTok should not hinge on tariff adjustments. He noted, “That is fundamentally different than any American administration in recent history,” raising alarms about the implications of such a trade-off.

Breakingon.com is an independent news platform that delivers the latest news, trends, and analyses quickly and objectively. We gather and present the most important developments from around the world and local sources with accuracy and reliability. Our goal is to provide our readers with factual, unbiased, and comprehensive news content, making information easily accessible. Stay informed with us!
© Copyright 2025 BreakingOn. All rights reserved.