Former U.S. President Donald Trump recently stated that tariffs on China could potentially be lowered in exchange for forcing Tik Tok’s sale to an American company. His remarks come during a time with increasing pressure from American lawmakers to regulate the app over national security concerns regarding its Chinese ownership. Trump appears to suggest that trade policy and national security are increasingly intermingled with the app becoming a focal point of contention between China and the United States.
Trump’s Position on TikTok and China Tariffs
Having served as President of the U.S. during the time where TikTok was targeted for either a ban or a forced sale, Trump claims that slashing tariffs on Chinese goods could be used as a bargaining chip to facilitate the app’s transfer into American ownership. Previously, he has expressed concerns about TikTok’s ownership by the Chinese company Bytedance and its potential repercussions, which include the Chinese government spying on American citizens.
Trump opined that a trade shift could potentially persuade China to meet the U.S. trade terms that would entail the sale of TikTok, suggesting the app’s parent company pays a premium for compliance. He was quite supportive of implementing high tariffs on Chinese imports when he was in office, while now, he seems to be more favorable towards using trade liberalization as a form of negotiation for the protracted clash surrounding TikTok’s operations.
Bipartisan lawmakers have been advocating either for the selling of TikTok’s operating rights or complete prohibition. The conversation around TikTok seems to get more heated every passing day, with officials from the US government – both politicians and members of the intelligence community – sounding the alarm on the ramifications posed by the Chinese ownership of the app.
There is a draft bill circulating in Congress that suggests mandatory divestment within a specified duration or else it would result in an active ban in the US. All the while, TikTok maintains their stance of not providing user data to Beijing and other capitals in the Chinese mainland. Meanwhile, TikTok’s critics remain adamant on safeguarding Chinese influence over American digital industries.
Chinese Attitude with Prospective Setbacks and Difficulties
China has canceled any forced tik tok sales referring to it as a politically driven, biased Odell. The Chinese government has claimed in the past that it would prefer seeing TikTok die on US soil than having to sell the application to an American business magnate. If Trump follows through with his plans to lower tariffs, Beijing might interpret it as a form of incentive to communicate, but whether or not China would be willing to entertain the idea of being sold is still questionable.
Moreover, specialists in commerce are of the opinion that attempting to exercise authority by lessening the imposition of taxes on goods to resolve technological conflict issues is a very delicate approach and could worsen the ease of bilateral negotiations in the future. While some businessmen in America would show support towards the reduction of tariffs on Chinese products, advocates of stricter China policies would oppose these fading American defenses against China.
Conclusion
If Trump’s proposal to relax tariffs for a TikTok sale is anything to go by, it shows the growing intersection of trade policy and national security. While his proposal may ease relations between the U.S. and China, it certainly raises questions if a strategy this simplistic work would even. In the months to come, the U.S. economy will constantly be at loggerheads with national security to determine the best route to regulate relations with China. This is especially true as Congress tries to pass regulation bills concerning TikTok.