Trump expects Microsoft to pay Treasury for privilege of buying TikTok

President Donald Trump has often shown a tenuous grasp of how the economy works, but this is an interesting statement.

In a statement to the US press, Trump has seemingly endorsed Microsoft’s acquisition of TikTok, but has suggested the firm should pay some sort of tax to the US Government. The logic behind the move is quite absurd, and onlookers should be very concerned with the potential to set precedent in the M&A world.

“I did say that if you buy it, whatever the price is, that goes to whoever owns it, because I guess it’s China, essentially, but more than anything else, I said a very substantial portion of that price is going to have to come into the Treasury of the United States,” Trump said.

“Because we’re making it possible for this deal to happen. Right now they don’t have any rights, unless we give it to them. So if we’re going to give them the rights, then it has to come into, it has to come into this country.”

Trump emphasised the asset is worthless unless the US Government grants it the right to operate within the borders, therefore this could be viewed as somewhat of a passive aggressive threat. In short, this is pay to play. TikTok is going to be banned in the US, but a deposit into the Treasury bank accounts might change our mind.

Like any successful Chinese export, Trump has found a severe dislike for TikTok. Secretary of State Mike Pompeo and the President have suggested the app could be banned, though US fans were offered some light relief with the Microsoft acquisition announcement. Some might have assumed US ownership of the app might sway the Presidents favour, but the money-hungry White House seemingly needs more greasing.