- Trump blamed China’s tariff retaliation for stalling the TikTok sale to a U.S. buyer.
- A 54% total U.S. tariff on Chinese goods and China’s matching 34% levy have halted trade talks.
- Global markets tumbled while Trump insisted tariffs stay until trade deficits are erased.
President Trump said Sunday that China’s pushback on U.S. tariffs has delayed a nearly finalized deal to sell TikTok to an American buyer. He emphasized he won’t scale back trade penalties unless the U.S. trade deficit, particularly with China, is wiped out.
China’s Resistance Derails TikTok Progress
The Trump administration had made progress toward a TikTok sale—required under a 2024 bipartisan law—but Trump claimed China blocked the deal over tariffs. “If I gave a little cut in tariffs they would have approved that deal in 15 minutes,” he told reporters.
Tariff Pressure Mounts
On Wednesday, Trump imposed a 34% tariff on Chinese goods, pushing the overall effective rate to 54%. China responded Friday with its own 34% tariff and plans to restrict rare earth exports. Talks with China were subsequently halted.
TikTok Ban Temporarily Paused
Trump extended TikTok’s divestment deadline by another 75 days through executive order, pushing back the ban while negotiations continue. ByteDance, TikTok’s parent company, hasn’t confirmed whether it will sell the app.
National Security and Legal Backdrop
TikTok’s fate stems from national security concerns over Chinese access to American user data. Congress passed legislation mandating a sale after a judge blocked Trump’s earlier ban attempt. The platform maintains that user privacy is a priority.
Trump Holds the Line on Tariffs
Trump insisted tariffs will stay until U.S. trade deficits vanish. “Hundreds of billions of dollars a year we lose with China,” he said. A new 10% baseline tariff on nearly all trading partners took effect Saturday, with more hikes coming midweek.
Global Fallout and Diplomatic Shuffle
Trump’s tariffs sparked international backlash. Countries like Vietnam and Taiwan rushed to negotiate exemptions—Vietnam even offered zero tariffs. Taiwan’s president pledged more U.S. investments and full trade cooperation.
Asian Markets in Freefall
Markets across Asia plunged Monday. Japan’s Nikkei dropped over 8%, Hong Kong’s Hang Seng lost 9%, and Taiwan’s index plummeted nearly 10% as major tech firms like TSMC and Foxconn got hammered.
Trump Sees Leverage in Crisis
Despite the chaos, Trump claimed global leaders were eager to negotiate. “They are coming to the table,” he said, adding talks won’t begin unless nations offer substantial yearly payments.
U.S. Says Recession Isn’t Inevitable
Treasury Secretary Scott Bessent echoed Trump’s confidence, saying over 50 countries had initiated trade talks. He insisted there’s “no reason” to expect a recession, citing solid jobs growth prior to the tariffs.
