- President Trump grants a 75-day extension
- A deal was finalized, but fell apart
- Trump willing to reduce China’s tariffs to get deal done
TikTok users across the U.S. can breathe a sigh of relief, as President Donald Trump announced on Friday that he will again extend the deadline for the sale of the app.
The deal for the app’s Chinese owners ByteDance to sell to a U.S. buyer “requires more work to ensure all necessary approvals are signed,” Trump stated on his Truth Social platform.
Read more: TikTok: Who are the potential buyers?
The President added, “We do not want TikTok to ‘go dark.’ We look forward to working with TikTok and China to close the deal.”
The deadline has been granted another 75-day extension, coming just one day before the ban was originally set to go into effect – following Trump’s first extension after taking office in January.
Read more: Trump imposes tariff on islands inhabited only by penguins
ByteDance issued a statement in response to Trump’s executive order: “ByteDance has been in discussion with the US government regarding a potential solution for TikTok US. An agreement has not been executed. There are key matters to be resolved. Any agreement will be subject to approval under Chinese law.”
TikTok deal was finalized, but fell apart
A deal was finalized on Wednesday, with the President expected to approve it via executive order in the week, a source said. The order would trigger a 120-day window to secure financing and complete paperwork. The new U.S.-based company, backed by venture capital, private equity, and tech firms, would take control of TikTok’s U.S. operations, while ByteDance would keep a 20% stake.
The law states that ByteDance can hold no more than a 20% stake in the platform after the deal. Additionally, TikTok’s U.S. operations are prohibited from coordinating with ByteDance on the app’s algorithm or data-sharing practices.
Reported bidders include software giant Oracle, asset manager Blackstone, marketing platform AppLovin, AI search engine Perplexity, the founder of the adult website OnlyFans, and a last-minute bid from retail juggernaut Amazon.
According to Reuters, China put a possible deal on hold after Trump announced his sweeping tariffs on dozens of countries.
Trump acknowledged China’s disapproval in his social post, stating “We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!). This proves that Tariffs are the most powerful Economic tool, and very important to our National Security!”
Trump’s Tariffs
China now faces a 54% tariff on goods imported into the United States after Trump announced he was increasing them by 34% this week.
In retaliation, China announced a 34% tariff on U.S. imports, an increase from the previous range of 5% to 25% on various U.S. goods. “For all imported goods originating from the US, an additional tariff of 34% on top of the current applicable tariff rate will be imposed,” Beijing’s finance ministry said.
This has sparked Trump to hit back on his Truth Social platform saying “China has been hit much harder than the USA, not even close. They, and many other nations, have treated us unsustainably badly. We have been the dumb and helpless ‘whipping post,’ but not any longer.”
As reported by The Economic Times, Trump hinted on Thursday aboard Air Force One that he might be willing to reduce the tariffs on China if ByteDance were to approve a sale.
“We have a situation with TikTok where China will probably say we’ll approve a deal, but will you do something on the tariffs. The tariffs give us great power to negotiate,” he said.
