TikTok deal scuttled because of Trump’s tariffs on China

In a surprise move, President Donald Trump has extended the deadline for ByteDance, the Chinese parent company of TikTok, by 75 days to sell or divest from its U.S. operations, averting an imminent ban of the app in the United States.

The decision came just one day before the original April 5th deadline, set under a 2024 law passed over national security concerns. The law, signed by former President Joe Biden, required ByteDance to sell TikTok to a non-Chinese entity or face a full U.S. ban. Trump, upon taking office, issued an executive order pausing the ban and allowing negotiations to proceed.

“My administration has worked very hard to SECURE A DEAL TO SAVE TIKTOK, and we’ve made tremendous progress,” Trump posted on Truth Social. “The deal needs more time to ensure all necessary approvals are secured, which is why I signed an Executive Order to extend TikTok’s operations by 75 more days.”

China Reacts to New Tariffs, Stalling Agreement

While a framework agreement was reportedly reached earlier this week, the Trump administration’s newly imposed tariffs on China and other countries complicated the deal. According to sources familiar with the matter, ByteDance informed the White House on Thursday that China would not approve the deal under the current trade climate, demanding a broader negotiation involving tariffs.

Trump had been prepared to sign an executive order authorizing the creation of a new U.S.-based entity that would operate TikTok independently. This new company would be majority-owned and operated by American investors, with ByteDance retaining only a minority stake.

However, the last-minute tariff escalation prompted Beijing to pull back, delaying the finalization of the agreement. Trump alluded to this tension in his Truth Social post, stating:

“We hope to continue working in good faith with China, who I understand are not thrilled with our reciprocal Tariffs (necessary for Fair and Balanced Trade between China and the USA!). This proves Tariffs are our most powerful economic tool and vital to our National Security!”

U.S. Officials Optimistic Despite Setback

Vice President J.D. Vance, who has been leading the TikTok negotiations along with National Security Advisor Michael Waltz, had expressed optimism earlier in the week that a deal would be announced by the deadline. Vance noted in a Fox & Friends interview that only a few final steps remained.

“I think we’re in a good position,” Vance told Fox’s Lawrence Jones. “We’re continuing to work, but I’ll let the president make that announcement.”

Vance and his team spent nearly two months coordinating with ByteDance and a range of American investors. However, sources close to the talks say that the Chinese government’s change in position highlighted how deeply security concessions had gone in the negotiation.

ByteDance Response and Legal Complications

ByteDance has remained tight-lipped about its intentions, previously stating that it does not plan to sell TikTok. However, a company spokesperson confirmed on Friday that discussions with the U.S. government were ongoing.

“We’ve had discussions with the U.S. Government about a potential solution for TikTok US. No agreement has been finalized. There are significant issues to resolve, and any deal would be subject to Chinese law,” the spokesperson said.

The Supreme Court had previously upheld the TikTok ban in the final days of the Biden administration, though both Biden and Trump have since shifted away from enforcing the ban outright, preferring to seek a diplomatic resolution.

TikTok briefly went offline in the U.S. before Trump’s inauguration but resumed operations after the new administration signaled its willingness to find a mutually agreeable path forward.

Donald Trump Delays TikTok Ban for 75 More Days, Touts Progress on Striking  Deal

Multiple Bidders Emerge for TikTok U.S.

Several high-profile investors and companies have expressed interest in acquiring TikTok’s U.S. business, further complicating the negotiations. Among the interested parties are:

  • Reid Rasner, a Wyoming businessman

  • Alexis Ohanian, Reddit co-founder, as part of billionaire Frank McCourt’s consortium

  • Perplexity AI, an AI search engine startup

  • Steven Mnuchin, former Treasury Secretary under Trump

  • Amazon and AppLovin, both of whom reportedly joined the bidding as recently as this week

The final buyer will need approval from both the U.S. government and Chinese regulators, which may hinge on broader trade and tariff negotiations between the two nations.

Conclusion: TikTok’s Future Still in Limbo

With 170 million users in the United States alone, TikTok remains one of the most popular social media platforms in the country. While the 75-day extension provides temporary relief, the platform’s long-term future remains uncertain.

As the White House navigates complex geopolitical dynamics, trade disputes, and regulatory frameworks, TikTok’s fate will likely be decided not just by its ownership, but by the broader context of U.S.–China relations in the coming weeks.

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