US President Donald Trump has given TikTok a second 75-day extension to either sell its US operations or face a nationwide ban, as tensions between Washington and Beijing become more intense over the popular app.
Trump made a statement saying, “We don’t want TikTok to go dark, we’re working with TikTok and China to make this deal happen.” He initially granted an extension shortly after taking office, but that period was set to expire on Saturday.
Now, with more than 170 million US users at stake, TikTok must secure a deal or be banned under legislation passed by Congress.
ByteDance confirmed on Friday that discussions with the Trump administration were ongoing but still unresolved. “There are key matters to be resolved. Any agreement will be subject to approval under Chinese law,” a company spokesperson noted.
National Security Concerns and Legislative Pressure
The Biden administration previously raised concerns about TikTok’s potential misuse by the Chinese government for surveillance or political manipulation. This led Congress to pass a bipartisan law last year demanding ByteDance divest its US operations within six months or face a ban.
Advocates for keeping TikTok operational argue that banning the app would infringe on free speech and limit expression for millions of users.
Trump’s administration is actively working to finalize a deal that would place TikTok under American ownership. “The deal needs more work to ensure all necessary approvals are signed,” Trump reiterated on Truth Social.
Trade Wars Complicate Negotiations
Just like Huawei, TikTok, owned by Chinese tech giant ByteDance, now finds itself caught in a geopolitical tug-of-war.
Negotiations appeared close to resolution earlier this week, but talks broke down after Trump announced sweeping global tariffs, including new levies on China.
According to CBS News, ByteDance representatives contacted the White House to indicate China would not approve the deal unless negotiations over tariffs were reopened.
The plan was for Trump to sign an order initiating a 120-day timeline to finalize the sale, giving all parties time to complete paperwork and secure financing. The deal had received approvals from current investors, new stakeholders, ByteDance, and the US government before China withdrew from the agreement due to the new tariffs.
China’s embassy in Washington issued a statement condemning what it called “violations of basic market economy principles.” With China facing a 54% tariff on goods imported to the US, it has retaliated with 34% in counter-tariffs of its own.
Potential Buyers Line Up
Several potential buyers have emerged. Amazon has submitted a last-minute bid, although the company has declined to comment. Other interested parties include:
- Billionaire Frank McCourt and Canadian businessman Kevin O’Leary.
- Reddit co-founder Alexis Ohanian is reportedly backing McCourt’s bid.
- Microsoft, private equity giant Blackstone, venture capital firm Andreessen Horowitz, and search engine Perplexity AI are also rumored to be in the mix.
Trump confirmed that his administration is in touch with four separate groups interested in acquiring TikTok but did not provide specific names. Vice-President JD Vance is leading efforts to secure a buyer for the app.
Despite all this, Trump has floated the possibility of offering China tariff relief in exchange for approving TikTok’s sale.
Trump also emphasized that trade tariffs are “the most powerful economic tool” and critical to national security. “We hope to continue working in good faith with China, even though they’re not happy with our reciprocal tariffs.
As the deadline gets closer and negotiations remain tense, the future of TikTok in the US hangs in the balance. For now, users can only wait and see whether the app will continue to thrive or fade to black under mounting political pressure.
