President Trump suggests possible tariff reductions on China if a TikTok deal is finalized, with a critical deadline approaching. He emphasizes the importance of tariffs over TikTok’s existence as U.S. officials remain hopeful for an agreement before the April 5 deadline. Notably, investors are also eyeing strong social media stocks like Pinterest and Meta Platforms as potential opportunities.
President Donald Trump has indicated that he may consider a minor reduction in tariffs on China if assistance is rendered in finalizing the TikTok agreement. Given that TikTok, owned by the Chinese company ByteDance, boasts over 170 million users in the United States, its future operation hinges on Trump’s authorization of either a complete sale or partial divestiture to an American buyer. A critical deadline looms, as the 75-day extension requiring ByteDance to sell or face a ban in the U.S. is set to lapse on April 5.
During a recent press conference at the Oval Office, President Trump declared a 25% tariff on foreign-made vehicles and referenced the potential for extending the timeline to finalize the TikTok deal. However, he emphasized that China must actively participate in the transaction’s approval. While he shows an interest in preserving TikTok in the U.S., he prioritizes the implications of trade tariffs, asserting that “every point in tariffs is worth more than TikTok.”
U.S. Vice President JD Vance has expressed optimism regarding the completion of a TikTok deal by the deadline, although he noted that the legal processes involved may prolong the timeline. Trump remains hopeful that an initial outline of the TikTok agreement could be agreed upon by April 5. In previous remarks, Vance indicated that a high-level accord could be structured to safeguard national security while establishing an independent American version of TikTok.
Details surrounding the discussions on the TikTok deal, such as potential buyers, remain undisclosed at present. Notably, Trump previously suggested that any joint venture must include a 50% stake for the U.S. Any agreement will require consensus from President Trump, ByteDance, and the Chinese government, ensuring that all parties are in alignment before proceeding.
In other market insights, an analysis utilizing the TipRanks Stock Comparison Tool highlights the top-performing social media stocks that investors might consider. Presently, Pinterest (PINS) and Meta Platforms (META) are rated as “Strong Buy” by Wall Street, with PINS showing the most promising upside potential among the two options.
In summary, President Trump has signaled a willingness to negotiate tariff reductions with China contingent upon the finalization of the TikTok deal. The approaching April 5 deadline emphasizes the urgency for resolution among stakeholders, including the U.S. government, ByteDance, and Chinese authorities. Amid these developments, analysts continue to identify strong social media stocks worth considering, such as Pinterest and Meta Platforms, in light of their favorable ratings.
Original Source: markets.businessinsider.com
