US President Donald Trump, who had initially expressed frustration over China’s decision to retaliate with 34 per cent tariffs on American goods, appeared to soften his stance on the issue by offering a potential solution to the trade standoff.
Trump offered to lower US tariffs on Chinese goods if China lets TikTok sell its US operations to an American company.
The conflict started when China slapped 34 per cent tariffs on US goods, matching the US’s tariffs on Chinese imports. Trump accused Beijing of “panicking” but offered a deal: if China allowed a US company to buy TikTok, he would reduce the tariffs on Chinese goods.
Earlier this week, Trump hinted that he might provide tax relief if Beijing cooperated with his plan for TikTok. This came after he extended the deadline to ban the popular Chinese social media app by 75 days, citing ongoing negotiations over a broader trade deal with China.
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Taking to Truth Social, Trump said: “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’s remarks came as TikTok, which boasts 170 million American users, had temporarily gone dark following the Biden administration’s move to enforce a ban, only for Trump to intervene and extend its operation.
A spokesperson for ByteDance, TikTok’s Chinese parent company, confirmed ongoing talks with the US government, but cautioned that an agreement had yet to be finalized and would require Beijing’s approval.
Meanwhile, there is no response from China on Trump’s tariff proposal due to the ongoing Qingming Festival, a national holiday during which Chinese pay their tributes to ancestors.
However, the Chinese government issued a formal statement condemning the US’s use of tariffs. State-run Xinhua News Agency reported that Beijing believes these measures severely infringe upon the rights of trading partners and violate World Trade Organization (WTO) rules. China expressed strong opposition to what it described as US unilateralism in trade.
Amid growing concerns from US farmers—who rely heavily on exports to China—Trump’s tariff proposal highlighted the tension in bilateral trade relations. China imports roughly USD 30 billion worth of agricultural products from the US each year. Additionally, Beijing’s moves to limit rare earth exports could have significant ramifications for US defense manufacturers.
Tu Xinquan, dean of the China Institute for WTO Studies, told state-run China Daily that China’s countermeasures, which include both tariff and non-tariff actions, are unprecedented in their intensity. He pointed out that the measures were designed to hit the US where it hurts most.
(With PTI Inputs)
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