FRANKFURT, Germany (AP) — TikTok has agreed to withdraw a rewards feature that raised concerns about its potential to encourage excessive screen time, particularly among children, the European Union’s executive commission said Monday.
It was the first resolution of an investigation under the 27-country EU's sweeping Digital Services Act, which went into effect in February and aims to ensure a “safe and accountable online environment” by regulating large digital platforms.
TikTok made the commitment without conceding the feature violated the Digital Services Act, officials said.
The commission has however ruled that the withdrawal is legally binding, which “sends a clear message to the entire social media industry,” said Margrethe Vestager, European commission for digital affairs.
“Design features on platforms with addictive effects put the well-being of their users at risk,” she said in a statement. “That’s why we have made TikTok’s commitments under the DSA legally binding.”
The case involves TikTok Lite, a low-bandwidth version of the app released in Spain and France. It allowed users to earn points for things like following creators, liking content, or inviting friends to join TikTok. The points could be exchanged for Amazon vouchers and gift cards on PayPal. TikTok said rewards were restricted to users 18 years and older, who had to verify their age. Users could watch up to one hour a day of videos to earn rewards, which were capped at the equivalent of one euro ($1.09) a day.
The commission opened an investigation in April due to concerns that TikTok has not done a diligent assessment required under the act of the feature's potential “addictive effect,” especially for children, "given suspected absence of effective age verification mechanisms on TikTok."
The resolution of the TikTok Lite investigation does not affect an earlier probe launched against TikTok focusing on concerns about protection of minors, advertising transparency, data access for researchers, and mitigating risks of “behavioral addiction" and harmful content.
FILE - A TikTok sign is displayed on their building in Culver City, Calif., March 11, 2024. Officials from the European Union's executive commission said Monday, Aug. 5, 2024, that TikTok has agreed to withdraw a rewards feature that raised concerns about its potential to encourage excessive screen time, particularly among children. (AP Photo/Damian Dovarganes, File)
BANGKOK (AP) — Sweeping new tariffs announced Wednesday by U.S. President Donald Trump provoked dismay, threats of countermeasures and calls for further negotiations to make trade rules fairer.
But responses were measured, highlighting a lack of appetite among key trading partners for an outright trade war with the world's biggest economy.
Trump said the import taxes, ranging from 10% to 49%, would do to U.S. trading partners what they have long done to the U.S. He maintains they will draw factories and jobs back to the United States.
“Taxpayers have been ripped off for more than 50 years,” he said. “But it is not going to happen anymore.”
Trump's announcement of a new 20% tariff on the European Union drew a sharp rebuke from European Commission President Ursula von der Leyen, who said it was a “major blow to the world economy.”
“The consequences will be dire for millions of people around the globe,” von der Leyen said. Groceries, transport and medicines will cost more, she said while visiting Uzbekistan, “And this is hurting, in particular, the most vulnerable citizens.”
Von der Leyen acknowledged that the world trading system has “serious deficiencies” and said the EU was ready to negotiate with the U.S. but also was prepared to respond with countermeasures.
The British government said the United States remains the U.K.’s “closest ally," and Business Secretary Jonathan Reynolds said the U.K. hoped to strike a trade deal to “mitigate the impact” of the 10% tariffs on British goods.
“Nobody wants a trade war and our intention remains to secure a deal," said Reynolds. "But nothing is off the table and the government will do everything necessary to defend the U.K.’s national interest.”
Japan, America's closest ally in Asia, plans to closely analyze the U.S. tariffs and their impact, Chief Cabinet Secretary Yoshimasa Hayashi said, while refraining from talk of retaliation. But he said the moves would have a big impact on relations with the U.S.
Italy’s conservative Premier Giorgia Meloni said the higher tariffs would benefit neither side.
“We will do everything we can to work towards an agreement with the United States, with the aim of avoiding a trade war that would inevitably weaken the West in favor of other global players,” Meloni said in a Facebook post.
Brazil, hit with a 10% tariff, said it was considering appealing to the World Trade Organization. Its congress unanimously passed a bill to allow retaliation for any tariffs on Brazilian goods.
Financial markets were jolted, with U.S. stock futures down by as much as 3% early Thursday and a 3.1% drop in Tokyo’s benchmark leading losses in Asia. Oil prices briefly sank more than $2 a barrel.
“The magnitude of the rollout — both in scale and speed — wasn’t just aggressive; it was a full-throttle macro disruption,” Stephen Innes of SPI Asset Management said in a commentary.
While the longer-term ramifications could encompass a dismantling of supply chains built up over decades, a more immediate concern is the higher risk of recession.
“The (average) U.S. tariff rate on all imports is now around 22%, from 2.5% in 2024. That rate was last seen around 1910," Olu Sonola, Fitch Ratings’ head of U.S. Economic Research, said in a report.
"This is a game changer, not only for the U.S. economy but for the global economy. Many countries will likely end up in a recession. You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time,” Sonola said.
The burden falls heaviest on Asia-Pacific nations, with the highest tariffs for impoverished, financially precarious countries like Laos at a 48% tariff, Cambodia at 49% and Myanmar at 44%.
Asian countries that are among the biggest exporters to the U.S. pledged to act fast to support automakers and other businesses likely to be affected.
South Korean Prime Minister Han Duck-soo told officials to work with business groups to analyze the impact of the new 25% tariff to “minimize damage,” the trade ministry said.
China's commerce ministry said Beijing would “resolutely take countermeasures to safeguard its own rights and interests,” without saying exactly what it might do. With earlier rounds of tariffs China reacted by imposing higher duties on U.S. exports of farm products, while limiting exports of minerals used for high-tech industries such as electric vehicles.
“China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue,” it said.
Mexican President Claudia Sheinbaum said she would wait to see how Trump’s announcement will affect Mexico, which like Canada was spared for goods already qualified under their free trade agreement with the United States, though previously announced 25% tariffs on auto imports took effect Thursday.
“It’s not a question of if you impose tariffs on me, I’m going to impose tariffs on you,” she said Wednesday morning. “Our interest is in strengthening the Mexican economy.”
Canada had imposed retaliatory tariffs in response to the 25% tariffs that Trump tied to the trafficking of fentanyl. The European Union, in response to the steel and aluminum tariffs, has imposed taxes on 26 billion euros’ worth ($28 billion) of U.S. goods, including bourbon, prompting Trump to threaten a 200% tariff on European alcohol.
Some countries took issue with the White House's calculations.
Australian Prime Minister Anthony Albanese said the tariffs were totally unwarranted, but Australia will not retaliate.
“President Trump referred to reciprocal tariffs. A reciprocal tariff would be zero, not 10%,” said Albanese. The U.S. and Australia have a free trade agreement and the U.S. has a $2-to-$1 trade surplus with Australia. “This is not the act of a friend.”
Trump said the United States bought $3 billion of Australian beef last year, but Australia would not accept U.S. beef imports. Albanese said the ban on raw U.S. beef was for biosecurity reasons.
A 29% tariff imposed on the tiny South Pacific outpost of Norfolk Island came as a shock. The Australian territory has a population of around 2,000 people and the economy revolves around tourism.
“To my knowledge, we do not export anything to the United States,” Norfolk Island Administrator George Plant, the Australian government’s representative on the island, told the AP Thursday. “We don’t charge tariffs on anything. I can’t think of any non-tariff barriers that would be in place either, so we’re scratching our heads here.”
“We don’t have a 20% tariff rate,” said New Zealand's Trade Minister Todd McClay. But he said New Zealand did not intend to retaliate. "That would put up prices on New Zealand consumers and it would be inflationary,” he said.
As Trump read the list of countries that would be targeted Wednesday, he repeatedly said he didn’t blame them for the trade barriers they imposed to protect their own nations’ businesses. “But we’re doing the same thing right now,” he said.
“In the face of unrelenting economic warfare, the United States can no longer continue with a policy of unilateral economic surrender,” Trump said.
Speaking from a business forum in India, Chilean President Gabriel Boric warned that such measures challenge “principles that govern international trade.”
Colombian President Gustavo Petro, who has clashed with Trump before, said via X that the tariffs marked a milestone: “Today the neoliberalism that proclaimed free-trade policies all over the world has died.”
Analysts say there’s little to be gained from an all-out trade war, neither in the United States or in other countries.
“If Trump really imposes high tariffs, Europe will have to respond, but the paradox is that the EU would be better off doing nothing,” said Matteo Villa, a senior analyst at Italy’s Institute for International Political Studies.
“On the other hand, Trump seems to understand only the language of force, and this indicates the need for a strong and immediate response,” Villa said. “Probably the hope, in Brussels, is that the response will be strong enough to induce Trump to negotiate and, soon, to backtrack.”
AP journalists around the world contributed to this story.
People walk past an electronic stock board showing the day's early loss of Japan's Nikkei 225 index at a securities firm Thursday, April 3, 2025 in Tokyo.(AP Photo/Shuji Kajiyama)
U.S. President Donald Trump is seen on a screen as currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, April 3, 2025. (AP Photo/Ahn Young-joon)
Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)
Cranes and shipping containers are seen at a port in Pyeongtaek, South Korea, Wednesday, April 2, 2025. (AP Photo/Ahn Young-joon)
Employee Jon Vazquez-DeAnda cuts keys for a customer at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)
This photo shows vehicles bound for foreign countries at a logistics center in Kawasaki near Tokyo, Thursday, March 27, 2025. (Michi Ono/Kyodo News via AP)
President Donald Trump departs after signing an executive order at an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)
President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump holds a signed executive order during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington, as Commerce Secretary Howard Lutnick listens. (AP Photo/Mark Schiefelbein)
