US-China trade tensions put TikTok’s future in jeopardy once again
Following President Trump’s threat of a 100% trade tariff on Chinese imports, the latest TikTok deal could be in danger.
Tensions between the United States and China have flared once again, putting the future of TikTok’s US operations back into question. Just as progress was being made towards forming a separate, US-run version of the app, President Donald Trump has threatened plans to impose an additional 100% tariff on Chinese imports starting next month.
The move follows China’s decision to tighten export rules for rare earth minerals – materials essential for producing cars, smartphones, and countless pieces of modern technology. Trump described Beijing as “becoming very hostile” and accused China of trying to hold the world “captive” with its rare earth policy. He also said the US would introduce export controls on “critical software” in response.
The announcement sparked immediate concern in global markets, with stocks sharply falling. The tariff threat adds to an already fragile trade relationship between the two powers, and it has once again placed TikTok’s future in doubt. As Digital Music News reported, the escalating situation “adds new uncertainty to the potential deal with Beijing to spin TikTok off into a separate U.S. operated entity.”
Talks between Trump and Chinese President Xi Jinping were expected to take place at a summit in South Korea later this month, but the US President has since cast doubt on whether the meeting will go ahead. “I’m going to be there regardless,” he told reporters, though he also admitted, “I don’t know that we’re going to have it.”
Beijing has responded firmly to Washington’s latest stance. “Resorting to threats of high tariffs is not the right way to engage with China,” said a spokesperson from the Ministry of Commerce. “If the U.S. persists in acting unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests. Our position on a tariff war remains consistent – we do not want one, but we are not afraid of one.”
China’s new export restrictions include a wider list of limited rare earth minerals and tighter controls on how they are used abroad. These changes, combined with new port fees for US-linked ships, could have significant effects on global tech supply chains – and by extension, on platforms like TikTok that rely heavily on software and hardware integration.
After months of progress, the long-awaited TikTok USA deal could now be at risk. If the agreement collapses, it may reignite uncertainty around whether the app can continue to operate in the US. Concerns around a disintegrating deal’s impact on music discovery will be brought to the fore of artists’ and creators’ minds yet again. It’s been far from easy reaching a deal at all, with major investors have already stepped back from negotiations – as seen when Blackstone withdrew from its proposed TikTok buyout earlier this year. Who knows how long it could take to secure a new deal, if that even remains a possibility, after this latest trade tension development?
For now, TikTok’s future in America once again hangs in the balance. As trade tensions deepen, creators, businesses, and global audiences may soon feel the effects of decisions being made far beyond the app’s algorithm.