Donald Trump outlined plans to take a major stake in Tik Tok as he threatened China, Mexico and Canada with punishing tariffs and waged war on the global tax regime.
Within hours of his return to the White House, Trump flexed his muscles on the world stage by signing a flurry of executive orders and signalled an era of upheaval for the world economy.
The President floated the idea of a joint venture between Tik Tok’s Chinese owner and the US – and warned of tariffs of up to 100 per cent if Beijing does not agree a deal.
He held off on threats made in the campaign to impose immediate tariffs but said he was considering slapping 25 per cent duties on imports from Canada and Mexico next month.
And, in a move that could trigger a global showdown over tax regimes, the President ordered officials to draw up retaliatory measures against countries that apply extra levies on US multinational companies.
Outlining his ‘America First’ trade policy, he threatened to double tax rates on foreign nationals and companies in the US in response to ‘discriminatory’ levies on American firms.
Disruptor: Within hours of his return to the White House, Trump (pictured) signed a flurry of executive orders and signalled an era of upheaval for the world economy
Trump gave Tik Tok a 75-day extension to sell its US business or face a ban, indicating that the row over the app’s future in America could be used as a bargaining chip.
Signing the executive order after being sworn in, the President said Beijing would approve a deal ‘because [otherwise] we’d put tariffs on China’.
He floated the idea of 100 per cent tariffs – more than the 60 per cent he touted in the run up to the election – adding: ‘I’m not saying I would, but you certainly could do that.’
Without America ‘there’s no value’ in the Tik Tok app, he said. ‘So if we create that value, why aren’t we entitled to, like, half?’ he added, noting that the company could be worth hundreds of billions of dollars if it continues to be allowed to operate in the US.
He did not provide details on how a joint venture with China would work, but it could see the US government or an American company take a stake in Tik Tok.
The Biden administration had banned the app on national security grounds. Trump supported similar action during his first term as president but U-turned after gaining popularity on the platform, which he claims helped him win younger voters.
Tik Tok chief executive Shou Zi Chew was among the tech bosses to attend the inauguration alongside Meta chief Mark Zuckerberg and X owner Elon Musk.
While the threat of tariffs lingers over Beijing, Trump moved faster on his threats to impose levies on US neighbours Canada and Mexico from February 1, alleging that the countries had allowed illegal immigrants and fentanyl to cross into the US.
The US dollar hit five-year highs against the Canadian dollar and rose by 1pc against the Mexican peso after the comments.
Meanwhile the stock market reaction was muted as trading resumed on Wall Street for the first time since the inauguration.
The Dow Jones rose 1 per cent, the S&P 500 added 0.7 per cent and the tech-focused Nasdaq gained 0.6 per cent.
In the UK, the FTSE 100 index of blue-chip companies hit a record high, closing at 8548.29.
But bitcoin – which had soared to a record high ahead of the inauguration – lost most of its gains after Trump failed to address digital currencies in his first day in office.
The value of Trump’s own ‘meme coin’ plunged nearly 30 per cent to $37.74 from highs of more than $74.
Beijing last night warned a global trade war would ‘create no winners’ as tensions with Washington mounted.
Speaking at the World Economic Forum in Davos, China’s vice-premier Ding Xuexiang said: ‘Protectionism leads nowhere – there are no winners in a trade war.’
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