Former President Donald Trump recently revealed that he was on the verge of finalizing a deal with China regarding the ownership of TikTok, a popular video-sharing social media platform. However, he stated that the negotiations fell apart after he announced new tariffs that affected Chinese imports. Speaking to reporters aboard Air Force One as he returned to Washington D.C. from a weekend of golfing in Florida, Trump recounted the near-agreement, saying, “We had a deal pretty much for TikTok — not a deal but pretty close — and then China changed the deal because of the tariffs.”

Trump emphasized the leverage that tariffs have given the U.S. in negotiations, suggesting that if he were to lower the tariffs slightly, Beijing would quickly approve the deal. “If I gave a little cut in tariffs, they'd approve that deal in 15 minutes, which shows you the power of tariffs,” he added, underscoring his administration's strategy of using economic pressure to influence international negotiations.

The comments follow Trump's announcement on Friday that he planned to extend the deadline for TikTok’s potential sale. In a post on Truth Social, Trump declared his intention to sign an executive order that would allow ByteDance, TikTok's Chinese parent company, an additional 75 days to divest its stake in the app or risk a ban in the United States. “We do not want TikTok to 'go dark,'” Trump wrote, signaling his willingness to collaborate with both TikTok and China to finalize the transaction.

Utilizing tariffs as a negotiating tool has been a consistent approach for Trump. Earlier in the week, he imposed a baseline 10% tariff on imports from all countries, while specifically increasing the tariff rate on Chinese goods to a staggering 54%. In his remarks, he expressed openness to negotiating tariff reductions in exchange for concessions from China regarding the TikTok deal. “For instance, with TikTok as an example, we have the situation with TikTok, where China will probably say, ‘We'll approve a deal, but will you do something on the tariff?’” Trump explained, illustrating how he intends to leverage economic policy to secure favorable outcomes in international agreements.

Trump’s use of tariffs as a bargaining chip has been met with significant pushback from China. In response to the U.S.'s newly imposed tariffs, China announced its own set of countermeasures, implementing 34% tariffs on all U.S. goods. The Chinese Ministry of Commerce released a statement asserting that it would “resolutely take countermeasures to safeguard its own rights and interests,” highlighting the escalating tensions between the two nations.

Interestingly, Trump had first extended TikTok's deadline in January, shortly after taking office, giving ByteDance until April 5 to present a viable plan for the app’s future in the U.S. The app faced a temporary blackout for American users on January 18 before service was restored.

A number of high-profile investors and entrepreneurs have shown interest in acquiring TikTok, including Steve Mnuchin, Trump’s former treasury secretary; Alexis Ohanian, co-founder of Reddit; Frank McCourt, former owner of the Los Angeles Dodgers; and popular YouTuber MrBeast. The outcome of these negotiations remains uncertain as stakeholders await further developments.

As of now, representatives from TikTok, the Chinese Embassy in Washington D.C., and the Trump administration have not responded to requests for comments from Business Insider, leaving the future of the app and its ownership hanging in the balance.