Recent developments see President Trump granting TikTok an additional 75-day extension, amid ongoing discussions regarding the app's future in the US as pressure mounts for its ownership transfer to an American entity.
Trump Grants TikTok More Time Amid Ownership Deadline Tensions
Trump Grants TikTok More Time Amid Ownership Deadline Tensions
President announces a new extension for TikTok to negotiate compliance with US laws.
In an effort to prevent the popular social media platform TikTok from going dark, President Donald Trump has announced a second 75-day extension for the app to comply with US regulations. Speaking on Truth Social, Trump stated, "We do not want TikTok to 'go dark,' and we look forward to working with TikTok and China to close the Deal.” This extension follows the first deadline set after Trump's inauguration and allows TikTok time to secure a buyer and adhere to a law that mandates its US operations be sold or face a ban.
Currently owned by the Chinese company ByteDance, TikTok boasts over 170 million users in America. However, it faces potential closure unless a controlling stake is sold, as stipulated by Congress. ByteDance acknowledged ongoing discussions with the Trump administration but noted that an agreement has yet to be reached, citing unresolved key matters and required approvals under Chinese law.
The challenges to TikTok's future heightened during Trump’s presidency, particularly following concerns expressed by the previous Biden administration that TikTok could serve as a conduit for espionage and political interference. A bipartisan law was enacted last year mandating a sale within six months.
While Trump expressed optimism about finalizing a deal, previous negotiations nearly concluded mid-week were derailed by Trump's imposition of comprehensive tariffs on Chinese goods. Sources reveal that ByteDance informed the White House that a sale would not receive Chinese approval unless tariff negotiations took place.
In light of the looming deadline, numerous suitors, including Amazon, have emerged as possible buyers for TikTok. Reports indicate Amazon made a recent bid, while other contenders include billionaire Frank McCourt, venture capitalists like Andreessen Horowitz, and computing titans Microsoft and Blackstone. Trump highlighted his administration's communication with four potential buyers, led by Vice-President JD Vance.
As the situation evolves, the administration is considering a trade-off strategy wherein US tariff relief might encourage China to approve a TikTok sale. Trump has underscored the significance of these tariffs as a critical economic and national security tool, vowing to continue negotiations to secure the app's American future.
Currently owned by the Chinese company ByteDance, TikTok boasts over 170 million users in America. However, it faces potential closure unless a controlling stake is sold, as stipulated by Congress. ByteDance acknowledged ongoing discussions with the Trump administration but noted that an agreement has yet to be reached, citing unresolved key matters and required approvals under Chinese law.
The challenges to TikTok's future heightened during Trump’s presidency, particularly following concerns expressed by the previous Biden administration that TikTok could serve as a conduit for espionage and political interference. A bipartisan law was enacted last year mandating a sale within six months.
While Trump expressed optimism about finalizing a deal, previous negotiations nearly concluded mid-week were derailed by Trump's imposition of comprehensive tariffs on Chinese goods. Sources reveal that ByteDance informed the White House that a sale would not receive Chinese approval unless tariff negotiations took place.
In light of the looming deadline, numerous suitors, including Amazon, have emerged as possible buyers for TikTok. Reports indicate Amazon made a recent bid, while other contenders include billionaire Frank McCourt, venture capitalists like Andreessen Horowitz, and computing titans Microsoft and Blackstone. Trump highlighted his administration's communication with four potential buyers, led by Vice-President JD Vance.
As the situation evolves, the administration is considering a trade-off strategy wherein US tariff relief might encourage China to approve a TikTok sale. Trump has underscored the significance of these tariffs as a critical economic and national security tool, vowing to continue negotiations to secure the app's American future.
