In a recent statement, former US President Donald Trump revealed that China could potentially receive tariff relief if it approves the TikTok deal. This comment comes as Trump signed an executive action delaying the enforcement of the TikTok ban for 75 days.
According to Trump, "if we make a TikTok deal and China doesn't approve it, we could maybe put tariffs on China." This statement suggests that Trump is willing to offer tariff relief to China if it cooperates with the TikTok deal.
The TikTok deal has been a subject of controversy, with concerns over national security and data privacy. The delay in enforcing the TikTok ban is intended to allow the Trump administration to "determine the appropriate course forward in an orderly way that protects national security while avoiding an abrupt shutdown of a communications platform used by millions of Americans". TikTok faces an April 5 deadline to reach a deal to find a non-Chinese buyer under threat of being banned from the United States.
Trump's offer of tariff relief to China is seen as a strategic move to negotiate a favorable deal. However, it remains to be seen how China will respond to this offer.
Market Reaction
The AUD/USD currency pair has paused its recovery following Trump's comments, currently losing 0.46% on the day to trade near 0.6250 ¹.
What's Next?
As the situation unfolds, it's essential to keep a close eye on developments. Will China accept Trump's offer, or will the TikTok deal fall through? Only time will tell.
