In a significant turn of events, President Donald Trump has granted ByteDance an additional 75 days to secure a buyer for TikTok’s U.S. operations. This decision delays a looming ban on the popular short-form video app, which was previously scheduled to take effect under a 2024 federal mandate.
Trump cited ongoing negotiations as the reason for the extension. “The agreement still needs key approvals,” he shared on social media, signaling hopes for continued diplomatic cooperation with Beijing—even as tensions rise over trade.
The U.S. has recently imposed a 54% tariff on Chinese imports, a steep jump triggered by a 34% increase announced earlier this week. China responded with retaliatory measures, further straining bilateral relations. Trump, however, hinted that these tariffs could be reconsidered if ByteDance finalizes a divestment deal that satisfies U.S. conditions.
ByteDance, TikTok’s Beijing-based parent company, confirmed ongoing discussions with U.S. officials. A company representative stated, “We are exploring possible solutions but have yet to reach a formal agreement. Any deal will require compliance with Chinese legal frameworks.”
One of the biggest hurdles remains China’s stance on the sale. So far, the Chinese government hasn’t made any public commitments to allow the transaction, raising uncertainty about the deal’s feasibility.
Trump noted that four interested groups are in talks over acquiring TikTok’s U.S. business, but stopped short of naming them.
Congress had initially passed the TikTok divestment law with overwhelming bipartisan support, citing national security risks and potential surveillance concerns tied to the Chinese government. Then-President Joe Biden signed the bill into law before leaving office.
Despite the legislation setting a January 19 deadline, the new Trump administration chose not to enforce it immediately. The Department of Justice even advised tech giants Apple and Google in January that enforcement was on hold—prompting them to allow TikTok back on their platforms.
Under the newly extended timeline, ByteDance now has until mid-June to resolve the matter.
Inside sources suggest that talks are gravitating toward a structure in which major U.S.-based investors in ByteDance, such as Susquehanna International Group and General Atlantic, would expand their stakes to create a new American entity for TikTok. This would ensure Chinese ownership drops below the 20% threshold required by U.S. law.
Retail giant Walmart has also reportedly shown renewed interest in joining the investor group, though it has not yet issued an official statement.
As of now, TikTok has not commented on the situation. Meanwhile, the Chinese Embassy in Washington has also remained silent.
While the deadline has shifted, one thing remains clear—TikTok’s U.S. future is still caught between geopolitics, regulation, and market interest.
