Trump Grants TikTok Another 75-Day Reprieve Amid Tariff-Derailed Deal Negotiations President Donald Trump signed an executive order Friday extending the deadline for TikTok’s potential U.S. ban by 75 days, marking the second delay this year as negotiations to transfer ownership of the Chinese-owned app to American investors remain entangled in escalating trade tensions with Beijing.
Deal Collapse and Tariff Fallout The extension follows the abrupt derailment of a tentative agreement that would have shifted TikTok’s U.S. operations to a consortium of American investors, including Oracle, Blackstone, and venture capital firms. The deal, finalized Wednesday, would have allowed ByteDance—TikTok’s Beijing-based parent company—to retain a 20% stake in a new U.S.-controlled entity. However, hours after the White House signaled plans to approve the arrangement, Trump announced sweeping tariffs on Chinese imports, including a 34% duty on key goods. Chinese officials subsequently refused to greenlight the TikTok sale until trade negotiations resume, effectively freezing the deal.
Trump’s Balancing Act In a Truth Social post, Trump framed the extension as necessary to “ensure all necessary approvals are signed” while emphasizing his administration’s desire to avoid TikTok “going dark” for its 170 million U.S. users. The president hinted at leveraging tariffs as a bargaining chip, stating, “This proves tariffs are the most powerful economic tool, and very important to our national security!”. Vice President JD Vance, who led months of negotiations with investors, had courted bids from firms including Oracle and Amazon, while unconventional offers emerged from figures like OnlyFans founder Tim Stokely and Wyoming media entrepreneur Reid Rasner.
Legal and Political Crosscurrents The extension pushes the new deadline to mid-June, despite questions about Trump’s legal authority to override a 2024 bipartisan law requiring ByteDance to divest TikTok by January 19—a deadline Trump previously extended via executive order in January. Legal experts note the administration’s reliance on creative interpretations of presidential powers, as the original statute did not explicitly authorize such delays.
Broader Implications The standoff underscores the deepening intersection of tech security and trade policy. While U.S. lawmakers across parties warn of risks posed by Chinese access to American user data, Beijing’s insistence on controlling TikTok’s proprietary algorithm has hardened. The app briefly shut down U.S. operations in January ahead of Trump’s first extension, highlighting the fragility of its operational status.
What’s Next With the deal now tethered to U.S.-China tariff talks, analysts suggest ByteDance’s ability to secure Beijing’s approval hinges on whether Trump offers concessions, such as reduced duties, in exchange. Meanwhile, the investor consortium awaits clarity, even as Trump allies like Jeff Yass—whose firm holds a 15% ByteDance stake—remain influential behind the scenes.
As the White House walks a tightrope between national security concerns and economic diplomacy, TikTok’s fate has become a bellwether for the broader U.S.-China rivalry—one where viral dances and trade wars collide.