On the 26th (local time), U.S. President Donald Trump announced a 25% tax on automobiles at the White House, stating that if the Chinese video platform TikTok cooperates in selling its U.S. business rights to the country, he could lower the tariffs. This reveals Trump’s ambition to make TikTok a U.S. corporation again.
After taking office, Trump signed an executive order suspending the so-called 'TikTok ban law' for 75 days, taking the lead in saving TikTok. Earlier, the U.S. Congress passed the so-called 'TikTok ban law' in April last year, which requires TikTok's parent company, ByteDance, to sell TikTok's U.S. business rights within 270 days, and if it fails to do so, the service will be banned in the U.S.
In fact, Trump was negative about TikTok in the past. During his first administration, he issued an executive order to ban TikTok along with the Chinese messenger application WeChat. Although this executive order was halted by a U.S. court at the time, it is surprising that Trump, who banned TikTok, is now taking the lead in saving it after about four years.
The reason for Trump's change in attitude toward TikTok is that it could help him succeed in his re-election. After his election victory in December of last year, Trump said, "I have a warm feeling for TikTok in my heart," adding, "I won the young vote by a margin of 34%. Some people say that TikTok played a role in that process."
Trump still needs TikTok's help to secure support from young voters. The British weekly magazine The Economist noted, "TikTok is favorable to Trump, along with Elon Musk's X (formerly Twitter)," and stated, "Trump can spread his message very widely through both apps." As of June last year, the number of followers of President Trump on TikTok reached 15.2 million.
By saving TikTok, Trump could deliver favorable messages to voters. Earlier, Chinese expert Bill Bishop stated in an interview with the Associated Press in January, "If the TikTok ban is lifted, Trump will become a savior," adding, "Trump will benefit not only from users but also from the TikTok company that is now 'indebted to Trump.' TikTok will be motivated to produce pro-Trump content."
It is also noteworthy that TikTok's investors are the 'money line' of the U.S. Republican Party. Jeff YAS, a board member of ByteDance, is known as a major donor to the Republican Party. TikTok is using substantial funds to win over Trump's associates. ByteDance reportedly paid $150,000 to David Urban, a veteran lobbyist and former Trump campaign advisor, to secure the support of Washington lawmakers for TikTok.
Recently, Trump has also been playing a role in connecting TikTok with investors. On the 10th, Trump stated, "I am negotiating with four consortiums for the sale of TikTok's U.S. business rights, and the deal will soon be finalized." Former Los Angeles Dodgers owner Frank McCourt and the artificial intelligence (AI) company Perplexity have shown interest in acquiring TikTok's business rights. A plan is being discussed in the U.S. to create a joint venture with ByteDance, increasing the equity of the U.S. corporation while decreasing ByteDance's stake.
The Economist reported, "If TikTok does not sell its business rights to an approved buyer by the 5th of next month, the TikTok ban law will be reinstated nationwide," adding, "However, Trump has repeatedly stated that he could extend the grace period for the TikTok ban if necessary."