POLITICAL

Trump Flexes Economic Muscles: President Plans to Take Major Stake in TikTok and Threatens Taxes and Tariffs

January, 22, 2025-05:29

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Trump Flexes Economic Muscles: President Plans to Take Major Stake in TikTok and Threatens Taxes and Tariffs

Donald Trump unveiled plans to secure a significant stake in TikTok, while simultaneously threatening China, Mexico, and Canada with severe tariffs and challenging the global tax system. Within hours of his return to the White House, Trump took decisive action, signing a series of executive orders that signaled a new era of economic disruption on the world stage. One of the key proposals included a potential joint venture between TikTok’s Chinese parent company and the U.S., with Trump warning of tariffs as high as 100% if an agreement with Beijing was not reached. While he refrained from immediately imposing tariffs during his campaign, the

President hinted at the possibility of 25% duties on imports from both Canada and Mexico starting next month. In a bold move that could ignite a global confrontation over tax policies, Trump also instructed officials to prepare retaliatory actions against countries imposing additional taxes on U.S. multinational corporations. As part of his "America First" trade agenda, he threatened to double tax rates on foreign nationals and companies operating in the U.S. in retaliation for what he deemed "discriminatory" taxes on American businesses. Disruptor: Within hours of returning to the White House, Trump (pictured) signed a series of executive orders, signaling a period of economic upheaval on the global stage.

Trump granted TikTok a 75-day extension to sell its U.S. operations or face a potential ban, suggesting that the ongoing dispute over the app's future in the U.S. could be leveraged as a bargaining tool. In a move that followed his swearing-in, the President asserted that Beijing would ultimately approve a deal "because if they don’t, we’ll impose tariffs on China." Trump even floated the possibility of imposing 100% tariffs—an increase from the 60% previously discussed during the election campaign—saying, "I’m not saying I would, but you certainly could do that." He also emphasized that without American participation, TikTok would hold little value. "So if we create that value, why aren’t we entitled to, like, half?" he questioned, noting that the app could be worth hundreds of billions of dollars if it continues operating in the U.S.