President Trump has signed an executive order that temporarily suspends the "sell or ban" law for the short-video social media platform TikTok for the next 75 days.
However, he also threatened that if China does not approve the transaction agreement regarding the app, he will impose high tariffs on China.
Trump stated that the U.S. "should have the right to own 50% of TikTok," and that if China refuses to reach an agreement, he is "sure" he can impose tariffs on China, with rates ranging from 25%, 30%, 40%, 50%, or even 100%.
Trump added, "If I don't make this deal, TikTok will be worth nothing. If I do make the deal, TikTok could be worth a trillion dollars."
The fate of TikTok is bound to remain a political focal point between the U.S. and China. While Trump has threatened to impose additional tariffs, on the flip side, this could imply that if TikTok sells 50% of its equity, Trump might not impose the expected tariffs on China. Could this be positive news for Chinese assets?
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