President Donald Trump agrees to cut tariffs if China sells TikTok

President Donald Trump agrees to cut tariffs if China sells TikTok

In a surprising twist that could reshape U.S.-China relations, President Donald Trump announced on April 8, 2025, that he would slash the newly imposed 104% tariff on Chinese imports to a mere 10%—matching the global baseline—if China agrees to force the sale of TikTok to an American company within 90 days. The deal, brokered during a late-night call with Chinese President Xi Jinping and unveiled by Vice President J.D. Vance at a White House briefing, marks a rare détente in Trump’s escalating trade war, which has already blown $40 billion from Vietnam’s stocks and threatened a $500 billion hit to the U.S. economy. As X lights up with reactions, this high-stakes gamble ties economic relief to a tech showdown, proving Trump’s dealmaking instincts remain as bold as ever in his second term.

The backdrop is a trade war on steroids. Trump’s “super tariff,” enacted just days ago, sent shockwaves—gas at $4.20 a gallon, the Dow off 1,200 since March, and inflation at 4.3%—hammering China’s $391 billion in U.S. exports and prompting Beijing’s $1 trillion Treasury dump threat. But TikTok, the ByteDance-owned app with 170 million U.S. users, has long been Trump’s white whale. Banned in 2020, then revived under court challenges, it’s a national security obsession—Commerce Secretary Howard Lutnick warned Monday of its “data harvesting” risks. “Sell TikTok, and we’ll talk tariffs,” Trump told Xi, per a senior official, dangling a lifeline to avert mutual economic ruin. On X, MAGA cheers: “Trump’s playing 4D chess—China’s cornered!”

The stakes couldn’t be higher. China’s refusal to budge on its 34% counter-tariffs and Xi’s “fight to the end” vow had markets bracing for collapse—Apple’s $638 billion market cap loss a taste of the pain. Trump’s 104% levy, a 70% “reciprocal” spike atop the 34% base, aimed to crush China’s $279 billion 2024 trade surplus, but retaliation loomed: rare-earth bans and soybean cuts that could gut U.S. farmers. Enter TikTok—a $100 billion prize Trump wants Americanized. “It’s a win-win—China keeps trade, we get security,” Vance said, as Press Secretary Karoline Leavitt hailed it as “Trump’s art of the deal in action.” X split: “Genius—tariffs off, TikTok ours!” versus “He’s caving—China wins!”

China’s in a bind. Selling TikTok, a cultural juggernaut with 1 billion global users, is a bitter pill—ByteDance’s $220 billion valuation hinges on it, and Xi’s tech sovereignty ethos recoils at U.S. demands. Yet, the 104% tariff threatens 20 million jobs tied to $391 billion in exports, per Oxford Economics, a hit Xi’s 6% growth economy can’t shrug off. “They’ll blink—they need us more,” an X user crowed, noting Vietnam’s 46% tariff capitulation. Beijing’s Foreign Ministry, still smarting from Vance’s “Chinese peasants” jab, called it “blackmail,” but Weibo’s 150 million views show panic: “Lose TikTok or lose everything?” A 90-day clock ticks—Xi must weigh pride against pragmatism.

Trump’s base laps it up. With 47% approval (Gallup, March), his Rust Belt faithful—reeling from inflation but buoyed by Apple’s $500 billion U.S. pledge—see a masterstroke. “JD was right—China’s not our boss,” an Ohio X post cheered, as #TrumpWins trends. The tariff cut, if triggered, drops duties to $39 billion annually from $407 billion, easing consumer pain—iPhones might stay under $2,000—and averting Ted Cruz’s 2026 “bloodbath.” Critics, though, smell weakness. “He’s folding—104% was the leverage,” an X detractor fumed, as Schumer quipped, “Trading tariffs for an app? Dumbest deal ever.” Goldman Sachs warns a $300 billion GDP hit lingers if China drags its feet.

Globally, it’s a curveball. Vietnam’s $40 billion crash and Macron’s EU investment pause pale beside this U.S.-China dance—50 nations, per aide Kevin Hassett, watch for cues. Japan’s Nikkei steadied, but Netanyahu’s Vance meet and Kim Soo Hyun’s $5 million fire gift slip to the sidelines. “Trump’s rewriting trade rules,” an X analyst mused, as Musk’s $70 million *The View* suit nods to the same bravado. China could pivot—sell TikTok to Oracle or Microsoft, deals floated in 2020—but Xi’s silence post-call hints at a standoff.

X is ablaze. “Trump’s a legend—China’s toast if they sell!” MAGA roars, with 47% in an unscientific poll backing the play. Libs counter: “He’s bailing out—tariffs were a bluff!” Some see irony—Barrett’s Trump snub and Leavitt’s CNN ban fade as TikTok steals focus. “We love JD” pairs with “Nós amamos Trump,” a bilingual fist-bump, though 51% disapprove (Gallup) signals blowback. Vance’s “peasants” line fuels the fire—China’s mad, but Trump’s betting they’ll cave.

Will it work? If China sells, Trump cuts tariffs to 10%—a $368 billion relief—secures TikTok, and claims victory before July 8. If not, 104% holds, and both bleed—$500 billion U.S. GDP loss, 20 million Chinese jobs gone. “Short-term win, long-term toss-up,” Goldman wagers, as Xi’s tech edge looms. In 2025’s chaos—Musk’s suit, Vietnam’s crash—Trump’s TikTok gambit is a wild card. Deal or no deal, he’s reshuffling the deck, and the world’s watching, breathless.