diff --git a/src/compiler/visitor.ts b/src/compiler/visitor.ts
index 2cfb469f152..fbed806a8ad 100644
--- a/src/compiler/visitor.ts
+++ b/src/compiler/visitor.ts
@@ -1111,6 +1111,7 @@ namespace ts {
 
             case SyntaxKind.TaggedTemplateExpression:
                 result = reduceNode((<TaggedTemplateExpression>node).tag, cbNode, result);
+                result = reduceNodes((<NewExpression>node).typeArguments, cbNodes, result);
                 result = reduceNode((<TaggedTemplateExpression>node).template, cbNode, result);
                 break;
 
diff --git a/src/testRunner/unittests/transform.ts b/src/testRunner/unittests/transform.ts
index 7ed6e9760fd..f219fb6c683 100644
--- a/src/testRunner/unittests/transform.ts
+++ b/src/testRunner/unittests/transform.ts
@@ -45,9 +45,8 @@ namespace ts {
                 if (isIdentifier(node) && node.text === "oldName") {
                     return createIdentifier("newName");
                 }
-        
                 return visitEachChild(node, visitor, context);
-            }
+            };
             return (node: SourceFile) => visitNode(node, visitor);
         }
 
@@ -99,7 +98,7 @@ namespace ts {
                 },
                 compilerOptions: {
                     newLine: NewLineKind.CarriageReturnLineFeed,
-                    target: ts.ScriptTarget.Latest
+                    target: ScriptTarget.Latest
                 }
             }).outputText;
         });
diff --git a/tests/baselines/reference/transformApi/transformsCorrectly.issue27854.js b/tests/baselines/reference/transformApi/transformsCorrectly.issue27854.js
index 5afec3fccae..d1948143086 100644
--- a/tests/baselines/reference/transformApi/transformsCorrectly.issue27854.js
+++ b/tests/baselines/reference/transformApi/transformsCorrectly.issue27854.js
@@ -1,3 +1 @@
-newName<{
-    a: string;
-}> ` ... `;
+newName ` ... `;