President Donald Trump has granted TikTok another 75-day reprieve, extending the ongoing negotiations surrounding the popular video app owned by Beijing-based ByteDance Ltd. This latest extension comes as the administration scrambles to finalize a deal that would prevent the app from facing a ban in the United States. According to Trump, his administration has been working diligently on a "Deal to SAVE TIKTOK," and although progress has been made, more time is needed to reach a satisfactory agreement.
The timeline for this negotiation has been tight. On April 2, 2025, U.S. officials were reportedly close to finalizing a deal that would create a new U.S.-based version of TikTok, primarily owned and operated by American investors. The proposal included reducing ByteDance’s stake in TikTok to below 20 percent to comply with U.S. law, which requires the Chinese company to divest its interest in the app or face a ban.
White House officials had planned for Trump to sign an executive order that would open a 120-day window to complete the transaction, aiming to announce the deal before an April 5 deadline. However, the plan quickly unraveled the following day when, in response to Trump’s sweeping tariff announcement, ByteDance representatives warned that Beijing would withhold approval for any deal until negotiations regarding the tariffs could take place.
On April 3, 2025, Trump’s administration faced a setback when the president raised tariffs on Chinese imports to an unprecedented 54 percent as part of a broader trade initiative. Following this announcement, ByteDance indicated that the Chinese government would not approve any TikTok deal until trade discussions were resolved. In a statement, a spokesperson for the Chinese embassy reiterated that China has consistently opposed practices that violate market economy principles and harm the interests of enterprises.
In light of the new complications, Trump announced on April 4, 2025, that he would extend the deadline for negotiations by an additional 75 days. This marked the second reprieve granted by the president, as he seeks to navigate the complex interplay of trade relations and national security concerns surrounding TikTok.
ByteDance has publicly confirmed that it is in talks with the U.S. government regarding a potential solution to the TikTok ban but noted that no agreement has been executed yet, and key matters remain unresolved. The company has been reluctant to sell its lucrative U.S. operations, which have been valued between $20 billion and $150 billion, depending on various factors.
Trump's administration has enlisted senior officials, including Vice President JD Vance and National Security Advisor Mike Waltz, to help vet potential buyers for TikTok. A consortium of U.S. investors, including Oracle Corp., Blackstone Inc., and venture capital firm Andreessen Horowitz, has emerged as a leading contender to acquire TikTok. Under the proposed arrangement, new investors would own 50 percent of TikTok’s U.S. business, while existing U.S. investors would hold about 30 percent, effectively reducing ByteDance’s stake to just below the 20 percent threshold.
However, critics of the proposal have raised concerns that allowing ByteDance to retain control of TikTok's algorithm could undermine the intended purpose of the divestment law. They argue that keeping the algorithm in Chinese hands could still enable the Chinese government to access user data and influence content on the platform.
Trump's approach to TikTok marks a significant shift from his previous stance during his first term, when he sought to ban the app over national security worries. In his recent campaign, he embraced TikTok as a tool to engage younger voters, claiming that it played a crucial role in his election success.
Amid the ongoing negotiations, other companies have expressed interest in acquiring TikTok. Amazon.com Inc. recently submitted a bid to the White House, although it has not been taken as seriously as other offers. Other potential bidders include Walmart and the investment firm Blackrock.
As the April 5 deadline looms, the White House remains optimistic about reaching a deal. Vice President Vance told Fox News that discussions were "in a good place" and that an agreement would likely be finalized before the deadline. However, Senate Majority Leader John Thune emphasized the importance of finding the right buyer and deal to ensure national security.
On the other hand, Republican lawmakers on the House China Committee have expressed caution, stressing that any TikTok deal must comply with U.S. law and prevent the Chinese Communist Party from accessing American user data. They are awaiting further details from the administration to ensure that the deal aligns with national security interests.
Democratic lawmakers have criticized Trump’s extension of the TikTok deadline, suggesting it is a distraction from the chaos surrounding his tariff policies. Senate Minority Leader Chuck Schumer remarked that the extension does not represent a decisive action but rather a diversionary tactic to shift focus from more pressing issues.
As the situation develops, both sides of the aisle in Washington continue to grapple with the implications of TikTok’s ownership and the potential risks associated with its ties to the Chinese government. With over 170 million Americans using the app monthly, the stakes are high, and the outcome of these negotiations could set a precedent for future dealings between U.S. and Chinese technology firms.
In summary, while Trump has granted TikTok a temporary reprieve, the complexities of trade negotiations and national security concerns create an uncertain path forward. As the deadline approaches, all eyes will be on the administration’s next moves and the potential implications for the future of TikTok in the United States.
