China’s counter-tariff on U.S. goods suggests that the sale of TikTok could take longer to finalize
- The dateline for TikTok ban in the U.S. will expire tomorrow.
- President Trump said the other day that if China agrees to a TikTok sale, it will grant them a tariff relief.
- Earlier this week, Trump said that he’s confident there would be a deal.
Assessment
China’s decision today to impose a 34% counter-tariff on U.S. imports signals that it may not be ready to enter into a deal involving the sale of TikTok. This increases the likelihood that a deal will take longer to finalize. However, Trump has previously stated that he is willing to extend the ban deadline.
The more uncertainty surrounds TikTok, the more market share it risks losing to competitors like Meta Platforms. According to Sensor Tower, eight of the ten largest advertiser categories reduced their ad spend on TikTok in Q1 2025 compared to the same period in 2024. Sensor Tower notes that these slight to moderate pullbacks in spending largely shifted to Meta Platforms.