Skip to playerSkip to main contentSkip to footer
  • 5/12/2025
Can the US-China Trade Deal Save TikTok? The TRUTH Behind the Tariff Cuts!
Transcript
00:00What a day for the markets. Stocks are surging worldwide. Why? Because the U.S. and China have
00:06agreed to a major tariff reduction. But there's more to this story than meets the eye. Could this
00:11trade truce be the key to unlocking the TikTok situation? We're diving deep into the details of
00:17this deal and what it means for you, right here on USA Newsreel. For months, the U.S. and China
00:24have been locked in a trade war, slapping tariffs on each other's goods. This has created uncertainty
00:29in the global economy, impacting everything from the price of your electronics to the
00:35cost of agricultural products. Remember Trump's Liberation Day tariff announcement? Well, markets
00:42tanked then, and today we're seeing the opposite reaction. These tariffs have been as high as
00:4945% on some goods, causing major disruptions. Businesses have struggled to adapt and consumers
00:56have felt the pinch. But now, there's a glimmer of hope. Here's the deal. Both sides have agreed
01:03to slash tariffs. The U.S. will reduce tariffs on Chinese imports to 30%, and China will reciprocate
01:10by lowering tariffs on U.S. goods to 10%. This takes effect on Wednesday and lasts for 90 days.
01:19According to our sources, this is a 115% cut on tariffs. That's a pretty big deal. The immediate
01:25reaction has been overwhelmingly positive. Stock markets are soaring, with the Dow S&P 500 and
01:33NASDAQ all seeing significant gains. European and Asian markets are also up. Investors are breathing
01:41a sigh of relief, hoping this is the start of a more stable economic relationship. But is this just
01:48a temporary fix? Our business reporter Jonathan Josephs writes that this 90-day period is intended
01:57to allow time for both sides to ease tensions through negotiations. Michael Race, our business
02:04reporter, points out that economists at Deutsche Bank suggest this lowering of tariffs and last week's
02:11U.K.-U.S. deal on them, means there's both a likely cap and floor to Trump's rates of 10% to 30%. However,
02:20not everyone is convinced this is a complete victory.
02:25Janka Urtel, director of the Asia program at the European Council on Foreign Relations, argues that this
02:32deal might be interpreted in Beijing as the Trump administration backing down. She says China is in
02:39a psychologically stronger position now than before.
02:45Urtel also cautions that it's not really a deal yet, without seeing details on fresh commitments from
02:50Beijing on key issues like market access or expanded imports of U.S. goods.
02:56Now, let's talk about the elephant in the room, TikTok. You may recall the law last year ordering
03:02TikTok's Chinese parent company, ByteDance, to sell the app or face a ban in the U.S.
03:08The deadline has been extended multiple times, leaving many wondering what's really going on.
03:15President Trump has even hinted that the TikTok situation could be resolved as part of a broader
03:20trade deal. He told NBC News that there were people ready to buy the app, but tariffs had
03:26limited China's ability to do business with the U.S. Could this 90-day pause on tariffs be a way to
03:34facilitate a TikTok sale? It's certainly possible. The Chinese government would likely need to approve
03:41such a sale, making it a key point of negotiation between the two countries. So, what does all of
03:47this mean for the future? Well, it's complicated. On the one hand, the tariff reduction is a positive
03:54step towards stabilizing the global economy and easing trade tensions. On the other hand, there are still
04:00many uncertainties and potential pitfalls. The success of this agreement will depend on whether
04:06both sides can engage in good-faith negotiations and make meaningful commitments on key issues.
04:12It also depends on the outcome of the TikTok situation and whether a sale can be successfully
04:17negotiated. It's also worth noting that the U.S. tariff of 30% is still high, but analysts say that
04:25the amount will be manageable. Now, we want to hear from you. What do you think about this tariff
04:31reduction deal? Do you think it will lead to a lasting resolution of trade tensions? And what
04:37about TikTok? Do you think it will be sold to a U.S. company? Let us know your thoughts in the
04:41comments below. Don't forget to like this video if you found it informative and subscribe to USA News
04:48Real for more updates on the latest news and analysis. We're committed to bringing you the real
04:54story, without the spin. Let's consider some alternative scenarios. What if the negotiations
05:01break down after 90 days? What if China doesn't make the concessions the U.S. is looking for? In that
05:08case, we could see a return to the trade war, with even higher tariffs and more economic disruption.
05:15Another possibility is that the TikTok sale falls through. This could lead to a ban of the app in
05:21the U.S., which would have significant implications for its users and the social media landscape.
05:26In conclusion, the U.S.-China tariff reduction is a significant development with the potential to
05:32stabilize the global economy and ease trade tensions. However, there are still
05:38many uncertainties and potential pitfalls. The success of this agreement will depend on future
05:44negotiations and the resolution of the TikTok situation. We'll continue to follow this story
05:51closely and bring you the latest updates.

Recommended