Trump signals TikTok deal delay as China trade talks continue

US President Donald Trump suggested that trade tensions with China could delay decisions about TikTok’s operations in the US.

He mentioned that a resolution to the trade conflict might affect the timing of any deal with ByteDance, TikTok’s Chinese owner.

Trump indicated he would postpone any deal requiring ByteDance to sell its US assets until the trade situation is resolved, stating, “We have a deal for TikTok, but it’ll be subject to China.”

Trump also spoke about tariffs, noting that he didn’t want them to increase further as it could discourage consumer spending.

The US recently imposed 10% tariffs on most imports, while some Chinese goods face up to 145% tariffs due to retaliatory measures.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Tariffs have consistently proven to be regressive taxes on American consumers

The tariff escalation with China has concrete economic costs for Americans across income levels, with a disproportionate burden on lower-income households.

Yale Budget Lab’s analysis estimates that the tariffs would increase consumer prices by 1.0-1.2% and reduce real GDP growth by 0.6% for 2025, effectively shrinking the economy by $80-110 billion annually 1.

The Tax Foundation projects an average tax increase of approximately $1,280 per household in 2025, highlighting how tariffs function as hidden taxes passed directly to consumers 2.

Specific consumer goods face particularly steep price increases, with electronics and clothing, staples in most household budgets, identified as sectors most vulnerable to tariff-driven inflation 1.

Supply chain executives have reported significant order cancellations across furniture, toys, and apparel industries, signaling that product shortages and higher prices are likely if tariffs remain at elevated levels 3.

2️⃣ Tariff threats followed by moderation has become a familiar pattern in U.S. trade diplomacy

Trump’s recent comments about potentially lowering tariffs follow a historical pattern established during his first administration, when initial dramatic tariff announcements were often followed by negotiations and adjustments.

The original 2018-2020 trade war followed this trajectory: after imposing tariffs on $550 billion of Chinese products, negotiations eventually led to the Phase One agreement that moderated some measures while leaving others in place 4.