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Trump's Tariffs and TikTok's Fate Intertwined

President Trump has linked the fate of TikTok to his tariff strategy towards China. Amid ongoing US-China tensions, Trump has hinted that tariffs could be imposed if China does not approve a potential future deal for TikTok.

Complex Interplay of Issues

Cornell professor Sarah Kreps emphasizes the intricate relationship between TikTok, tariffs, and other US-China issues, including the Russia-Ukraine conflict and tech competition. She highlights that "trades" may be needed for a mutually beneficial outcome.

Trump's Softening Tone Towards China

Despite previous confrontations, Trump has recently adopted a more conciliatory approach towards China, emphasizing that tariffs remain a powerful tool that he would prefer not to use. He has also expressed positive sentiments towards President Xi Jinping.

Contrasting Approach to Canada

Trump's friendly stance towards China contrasts with his recent threats of tariffs against Canada and Mexico. He has attributed Canada's "difficult" attitude to ongoing disputes.

National Security Concerns Downplayed

Trump has dismissed national security concerns regarding TikTok, which previously led to its ban. He questioned the significance of China spying on young users, despite his own earlier executive order citing national security risks.

Limited Flexibility in Trade Policy

PIMCO's head of US public policy, Libby Cantrill, cautions that Trump may face constraints in modifying his trade policies, given his long-standing focus on tariffs and desire for economic protection.

Fluid Dynamics

Despite Trump's recent overtures to China, his relations with Xi could quickly deteriorate. The evolving situation remains unpredictable, with the possibility of both tariffs and a potential presidential visit to China.