Trump D1: China Wins the First Round

Although Chinese President Xi Jinping did not attend the inauguration in Washington, D.C., former President Trump’s first executive order—which gives TikTok 75 days to find a buyer—signals a potential easing of tariff threats.

Initially, several tech CEOs, including TikTok’s CEO, joined Trump’s inauguration ceremony, held indoors at the Capitol Hill Rotunda due to the cold weather. Other tech giants like Elon Musk, Apple, Google, Meta, and Amazon were also present. Just a day earlier, TikTok had been temporarily banned before being allowed back online after Trump pledged to restore access.

At the center of this drama is Trump’s decision to revisit and possibly revise policies set by the Biden administration. The situation surrounding TikTok, however, stands apart. Under legislation passed by Congress and signed by Biden, TikTok was required to sell its U.S. operations to an American company by January 19 or face a ban.

However, on his first day in office, just hours after being sworn in, Trump issued an executive order revising Biden’s policy. The new order grants TikTok a 75-day window to find a buyer and stipulates that at least 50% of the company’s ownership must be American.

While this extension doesn’t remove the ban (Congress would need to amend the law for that), the additional time provides TikTok with an opportunity to explore other alternatives, such as joint ownership. The future of the platform remains uncertain.

In addition to the TikTok decision, Trump announced a 25% tariff on goods from Canada and Mexico, set to begin February 1. However, no new tariffs on China were introduced on Day 1 of his presidency, and Trump did not escalate tensions with China during his inaugural speech, signaling a potential softening of his stance toward Beijing.

There are even reports suggesting that Trump may visit China early in his second term.