The U.S. government has announced that it’s agreed to a tariff reduction on Chinese imports, effectively pausing an escalating trade war between the nations, and enabling markets to breathe a sigh of relief amid worsening impacts.
And it could also enable talks on a U.S. TikTok deal to go ahead, which the Chinese government had effectively put on hold while the U.S. sought to increase pressure on the nation.
The recent U.S.-China trade agreement, which includes a 90-day reduction of tariffs to a 10% baseline, has opened the door for renewed negotiations over TikTok’s future in the United States. This development provides TikTok until June to arrange a sell-off that satisfies both Chinese and American regulators.
Previously, discussions around TikTok’s ownership had stalled due to escalating tariffs and geopolitical tensions. The new trade deal signals a potential thaw in relations, allowing for the possibility of a resolution regarding TikTok’s operations in the U.S.
While the specifics of any potential agreement remain undisclosed, the trade deal’s emphasis on reducing economic barriers suggests a willingness on both sides to find common ground. This could lead to a compromise that addresses national security concerns while preserving the platform’s presence in the U.S. market.
