Trump’s TikTok lifeline comes with tariff warning

What happened On his first day back in office, US President Donald Trump signed an executive order to delay TikTok’s US ban by 75 days, while floating an unprecedented proposal for 50-50 ownership between Chinese parent company ByteDance and US interests. The move came with a stark warning — Trump threatened tariffs as high as 100% on Chinese imports if Beijing blocks a potential deal, saying “Ultimately [Beijing] would approve it because we’d put tariffs on China." The temporary reprieve allows TikTok to restore service to its 170 million US users after a brief shutdown over the weekend. The Jing Take The mixed signals from Trump — combining accommodation on TikTok with tariff threats — suggest a more nuanced approach to Chinese business than his campaign rhetoric indicated. “There's definitely a softening tone toward China,” Lu Zhou, CEO of investment firm Vanquor, told Axios, suggesting Trump “will take a more pragmatic economic approach towards China” in his second term. However, the administration’s stance poses new challenges for Chinese companies operating in the US market. Trump’s proposed joint venture model for TikTok could set a precedent for other Chinese tech firms, while the threat of punitive tariffs adds another layer of uncertainty. This comes as Chinese Vice Premier Ding Xuexiang warned at Davos that “protectionism leads nowhere” and a “trade war has no winners.” The market implications are significant. Analysts welcomed a moderated stance toward China, though some cautioned that Trump is — at heart, protectionist. For luxury and tech brands navigating US-China relations, Trump’s first day signals both opportunities and risks. While his willingness to negotiate on TikTok suggests potential flexibility, the tariff threats underscore continuing pressures on cross-border business. As one analyst told Reuters, both sides appear to be looking “to gain from each other rather than rain harm on an adversary.” The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Trump’s TikTok lifeline comes with tariff warning

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Published January 21, 2025

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Trump’s TikTok lifeline comes with tariff warning