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Trump Delays TikTok Ban Again as China Tariffs Cause Setback

TikTok Deal Hits a Roadblock: Trump Extends Ban Deadline

by pinkfloyd
April 7, 2025
in Business, Global Business, Government and Politics, International Relations, Regulatory Issues & Investigations, Social Media, Technology
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Trump Extends TikTok Deadline Amid Trade War with China - Brook Joyner/CNN

TikTok’s U.S. Ban Postponed Again Due to China Tariffs - Brook Joyner/CNN

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Trump Delays TikTok Ban Enforcement Again as China Tariffs Disrupt Deal

President Donald Trump announced on Friday that he is extending the enforcement of the TikTok sale-or-ban law for another 75 days, following complications caused by his recent tariff announcement on China. This delay, which comes just a day before the ban was set to take effect, raises further uncertainty about the app’s future in the United States.

In a post on Truth Social, Trump explained, “My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress. The Deal requires more work to ensure all necessary approvals are signed.” He later signed an executive order formalizing the delay, a move that has become increasingly crucial as the clock ticks on the contentious issue.

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The delay comes after months of negotiations to transfer control of TikTok’s U.S. operations to American ownership. The process was derailed by Trump’s latest tariff announcement, which imposed an additional 34% tariff on Chinese goods. The tariff move prompted ByteDance, TikTok’s China-based parent company, to pause the deal, citing the need for further negotiations regarding the tariffs.

The initial deadline for the deal was set for April 5, and Trump had hoped that a deal could be finalized before that. The agreement would have involved multiple venture capital and private equity funds, along with tech giants, investing in a company that would control TikTok’s U.S. operations. ByteDance would retain a minority stake of 20%, and the app’s U.S. division would be required to operate independently of ByteDance, especially in regard to data sharing and algorithm control.

Despite the setback, Trump and Vice President JD Vance—who has been overseeing the TikTok negotiations—had both expressed optimism that a deal would be struck by the deadline. However, the new tariffs threw a wrench in the works. ByteDance notified the White House on Thursday morning that they would be pulling out of the deal until the tariff issue was resolved.

With no clear resolution on the horizon, the Trump administration decided to extend the enforcement of the TikTok ban by another 75 days, giving more time to navigate the complexities of the deal and the trade tensions with China.

For the time being, TikTok’s 170 million U.S. users can continue to use the app, but the uncertainty surrounding the deal raises questions about the app’s long-term future in the country. The escalating trade war between the United States and China adds another layer of complexity to the situation, with little indication from China that they are willing to approve a sale of TikTok’s U.S. operations.

“We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs,” Trump said in his Truth Social post. “We do not want TikTok to ‘go dark.’” He added that the U.S. government remains committed to working with TikTok and China to close the deal.

ByteDance, for its part, confirmed on Friday that it is still in discussions with the U.S. government about a potential solution for TikTok U.S. However, the company also acknowledged that the deal remains unresolved and subject to approval under Chinese law.

The delay in enforcing the TikTok ban could spark tensions in Congress. Last year, lawmakers from both parties expressed concerns about TikTok’s national security risks, a sentiment that was upheld by the Supreme Court. Some members of Congress may view the extension as undermining their efforts to protect national security.

“The first extension was controversial, and this second delay only compounds the issue,” said Carl Tobias, a professor at the University of Richmond School of Law. “It violates the intent of the law and raises concerns about the proper process being followed.”

TikTok, which went offline for several hours before Inauguration Day in January, has previously expressed its willingness to work with the Trump administration on a long-term solution. At that time, TikTok’s CEO, Shou Chew, attended Trump’s inauguration, seated alongside cabinet secretaries and other tech leaders.

Jeremy Goldman, a principal analyst at eMarketer, described the extension as part of Trump’s negotiation strategy. “Drag out the clock, extract leverage, keep the drama simmering, and above all, make sure TikTok stays just visible enough to keep the dealmaking sharks circling,” Goldman said. “As long as TikTok is in limbo, Trump can continue to use it as a bargaining chip in his larger trade negotiations with China.”

With the clock ticking and tensions rising, all eyes are now on the next steps in the TikTok saga, as the deadline extension offers more time for deals—and disputes—to unfold.

Source: CNN – Trump to extend TikTok ban enforcement deadline after China tariffs derail deal

pinkfloyd

pinkfloyd

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