In the hours before President Trump's "Liberation Day" tariff blitz on Wednesday afternoon, several corporate media outlets reported that a TikTok deal was nearly finalized ahead of the weekend deadline. One report even claimed the new U.S. entity set to acquire TikTok's algorithm from Chinese parent company ByteDance would be named "TikTok America."
Fast-forward to early Friday morning: China launched a counter-offensive tariff strike—a volley of levies between the superpowers—in response to Trump's 54% effective tariff rate on Chinese imports. Beijing's effective tariff rate on U.S. imports now stands at the same level.
Great chart from Goldman.
Trump's tariff war with China is like a giant game of chess. The board? Well, the global economy—specifically, trade relations between the world's two largest economies. That's why, last week, Beijing delayed the strategic deal involving the Panama Canal. Hong Kong-based CK Hutchison Holdings had been preparing to sell BlackRock a portfolio of global ports, including two critical ports near the Panama Canal—ports that would have strengthened Trump's effort to bolster Western Hemispheric defense.
That's why, despite all the reports that Trump was preparing to approve a deal with U.S. investors behind TikTok America and ByteDance, the president found no reason for the deal to go through this week as he signed an executive order to keep the deal open-ended for 75 days. In a game of chess, why give up leverage - or rather positional or strategic advantages that a player can use to pressure or outmaneuver their opponent...
"My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress. The deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days," Trump wrote on Truth Social in the late afternoon.
The president continued: "We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!). This proves that Tariffs are the most powerful Economic tool, and very important to our National Security! We do not want TikTok to "go dark." We look forward to working with TikTok and China to close the deal. Thank you for your attention to this matter!"
Trump's decision to extend the timeline for the TikTok deal by another 75 days is part of his broader tariff war strategy.
