President Donald Trump recently indicated that he might consider reducing tariffs on China to facilitate a deal that would involve the Chinese company ByteDance (BDNCE) selling U.S. operations of TikTok.

"Maybe I'll give them a little reduction in tariffs or something to get it done," Trump said during a press conference, emphasizing that China's approval is critical for any agreement regarding the app's sale. “TikTok is big, but every point in tariffs is worth more than TikTok,” he added.

The context of Trump's remarks is significant, as ByteDance (BDNCE) faces an April 5 deadline to divest TikTok or risk a ban in the U.S. due to security concerns. 

Trump said that if an agreement is not reached by this deadline, he is open to extending it. “We’re going to have a form of a deal, but if it’s not finished, it’s not a big deal,” Trump said.“We’ll just extend it.”

Trump has used tariffs as a negotiating tool in the TikTok deal; he warned to levy tariffs on China on January 20, his first day in office, if Beijing did not approve a U.S. deal with TikTok.

China-linked ETFs: (NYSEARCA:KWEB), (NASDAQ:PGJ), (NYSEARCA:CQQQ), (NYSEARCA:FXI), (NYSEARCA:GXC), (NASDAQ:MCHI), (NYSEARCA:FLCH), (BATS:CNYA), (NYSEARCA:ASHR), and (NYSEARCA:YINN).

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