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Introduction
In a surprising yet telling admission, former U.S. President Donald Trump revealed that his own tariffs may have derailed a nearly finalized deal to sell TikTok’s U.S. operations to American investors. The statement, made during a conversation with reporters aboard Air Force One, sheds light on the intricate relationship between trade policies and geopolitical tech tensions. This article examines how Trump’s tariff strategy played a pivotal role in stalling TikTok’s sale, and what it signifies for U.S.-China tech relations.
TikTok Deal Disrupted:
- Former U.S. President Donald Trump recently admitted that new tariffs on China disrupted a near-complete deal to sell TikTok’s U.S. arm.
- The statement was made during a flight back to Washington after a weekend in Florida.
- Trump told reporters the deal was almost done — “pretty much” — before China backed out due to the tariffs.
- He acknowledged that a minor tariff concession would have sealed the deal swiftly.
- Trump’s quote: “If I gave a little cut in tariffs they would have approved that deal in 15 minutes.”
- The TikTok sale had involved major American investors: Oracle Corp, Blackstone Inc., and Andreessen Horowitz.
- These investors were working under pressure from a bipartisan law passed in 2024, requiring Chinese parent company ByteDance to divest TikTok’s U.S. operations.
- The original divestment deadline was set for January 19, 2025.
- Valuation estimates of TikTok’s U.S. unit ranged from $20 billion to $150 billion.
- Trump had previously offered tariff relief to China as a negotiating incentive for the TikTok sale.
- Before the tariff escalation on April 5, the deal was reportedly on the verge of being finalized.
- Following tariff hikes, China withdrew its approval, halting the process.
- Trump used the incident to highlight the “power of tariffs” in global negotiations.
- A second 75-day extension on TikTok’s U.S. operations was granted on April 4.
- The first extension had come on the day of Trump’s inauguration.
- This move pushes the new deadline to mid-June 2025.
- Trump’s administration has been actively pursuing solutions to resolve TikTok’s presence in the U.S.
- Vice President JD Vance and National Security Advisor Mike Waltz were involved in brokering the deal.
- Under the 2024 law, TikTok must be sold to an American company or face a nationwide ban.
– The sale also requires China’s regulatory approval.
- China’s rejection of the deal is widely viewed as retaliation to the tariffs.
- The situation underscores a broader struggle over tech sovereignty and digital influence.
- TikTok has over 150 million users in the United States.
- The app has repeatedly faced scrutiny over data privacy and national security risks.
- ByteDance’s refusal to comply without favorable trade terms reflects China’s hardline stance.
- Trump’s strategy has been to use economic pressure as leverage in tech-related negotiations.
- Analysts suggest that the tariffs, while effective in creating leverage, may have backfired in this instance.
- The standoff raises questions about the feasibility of U.S. tech decoupling from China.
- Meanwhile, TikTok continues to operate under temporary extensions — a digital limbo shaped by political chess.
- The final outcome remains uncertain, with potential implications for other Chinese apps facing similar scrutiny.
What Undercode Say: Deep Analysis & Perspective
The TikTok dilemma is more than just a social media business deal — it’s the embodiment of the larger U.S.-China tech war. What appears as a delayed acquisition is actually a geopolitical proxy battle being fought across code, capital, and cloud servers.
Tariffs as a Bargaining Tool — Double-Edged Sword?
Trump’s remarks demonstrate how tariffs are not just economic tools, but diplomatic ones. However, the TikTok situation reveals the downside of using them mid-negotiation. While they may extract concessions, they can also shatter already fragile agreements. In this case, China seemingly retaliated by halting its regulatory nod on a deal it may have otherwise tolerated.
American Investors in a Crossfire
Companies like Oracle and Blackstone found themselves in a volatile environment where political strategy outweighed corporate logic. These firms bet on acquiring a platform with massive U.S. reach and a young user base, only to have progress frozen by forces beyond market dynamics.
2024 Law and the Decoupling Agenda
The bipartisan law mandating TikTok’s divestment is a cornerstone of the U.S.’s broader tech decoupling strategy. It sets a precedent: U.S. lawmakers are no longer content with foreign tech dominance in critical markets. But the fact that TikTok’s sale hinges on Chinese approval shows how interconnected — and interdependent — the two countries remain.
Valuation Wars
A valuation swing from $20 billion to $150 billion shows how uncertain this market is — and how politically sensitive such numbers are. Each side, both Beijing and Washington, has incentives to either inflate or deflate TikTok’s perceived worth.
Temporary Extensions: A Strategic Pause or Prolonged Paralysis?
The two 75-day extensions signal hesitation. While they provide breathing space, they also introduce uncertainty — for users, investors, and regulators alike. These rolling delays reflect the complexity of resolving an issue that sits at the intersection of tech, trade, and national security.
A Glimpse into the Future
What happens with TikTok could set a precedent for other platforms like Shein, Temu, or even future AI-powered Chinese apps entering the Western market. It’s no longer just about content or commerce; it’s about influence, infrastructure, and information control.
Data, Power & Perception
Even if TikTok eventually gets sold, the precedent established here is stark: any foreign-owned platform operating in the U.S. can be uprooted if it’s seen as a security threat — or if it becomes a political pawn. This creates a chilling effect on investment and development in globalized tech ecosystems.
Fact Checker Results
- ✅ Claim Verified: Trump acknowledged that tariffs blocked a near-finalized TikTok sale. (Source: Bloomberg)
- ✅ Confirmed: Deal involved Oracle, Blackstone, and Andreessen Horowitz as potential buyers.
– ✅ Legal Backing: 2024 bipartisan law mandates
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References:
Reported By: https://timesofindia.indiatimes.com/technology/tech-news/china-would-have-approved-tiktok-deal-in-15-minutes-if-i-says-donald-trump/articleshow/120054561.cms
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