A new twist in a saga that has not been short of them: Donald Trump has signed an executive order (EO) extending by 75 days the deadline given to ByteDance, the owner of TikTok, to sell its American operations. If the Chinese group does not find a buyer, TikTok would be banned in the country. A largely hypothetical threat, given the way the American president is handling this matter.
The question of customs tariffs in the balance
This is indeed the second time that the new tenant of the White House has granted ByteDance a reprieve. TikTok was supposed to be banned on American soil since January 19, but very quickly after his inauguration the next day, Donald Trump signed an EO to grant a 75-day reprieve... which was therefore due to end tomorrow, Saturday, April 5.
Trump explained that the TikTok file "still required work to obtain all the required approvals." This additional time allows the social network to continue operating for an additional 75 days. "We hope to continue working in good faith with China, which, as I understand it, is not very happy about our reciprocal customs tariffs," he continues.
Beijing has indeed responded to the customs tariffs announced this week by the American president, by imposing 34% taxes on imports of American products into China (the same amount that weighs on Chinese products imported into the United States).
The acquisition of TikTok's American activities interests several buyers: Oracle, AppLovin, Amazon, as well as investment funds. But China doesn't seem keen to give up the social network, which could be used as a bargaining chip to lower tariffs.
Source: CNBC
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