Donald Trump Extends Deadline for TikTok Sale Deal in the US by 75 Days
Due to ongoing negotiations regarding the sale of TikTok in the US, President Donald Trump extended the deadline for the deal by 75 days.
This decision will prevent the popular app from being blocked, as it may be used for political manipulation or espionage in the interests of China.
Let’s take a closer look at the situation surrounding the sale of TikTok and the challenges that have arisen along the way.
Extension of the Deal Deadline and Possible Consequences
TikTok, owned by the Chinese company ByteDance, faced the threat of being banned in the US. A law passed by Congress required the app to either sell its American operations or face a ban. The initial deadline was in January, but Trump extended it by an additional 75 days, allowing negotiations on a potential sale to continue.
According to Trump himself, the US side does not want TikTok to “shut down” and hopes for a successful deal conclusion. It is important to note that any agreements must be approved by Chinese authorities, which significantly complicates the process.
Impact of New Tariffs on the Deal Process
The process of selling TikTok was complicated by the introduction of new tariffs against China, which made it impossible to finalize the deal within the original timeframe.
Initially, the sale negotiations were nearly completed, but following the introduction of the tariffs, China demanded a revision of the deal’s terms. China claims that such actions violate the principles of market economy and could affect further negotiations.
It is also important to note that China responded to the US tariffs by introducing its own tariffs, further escalating tensions in the negotiations. As a result, ByteDance notified the White House that the deal cannot be completed without resolving the tariff issue.
Potential Buyers of TikTok
In the face of uncertainty, several large companies have expressed interest in purchasing TikTok. Among them are giants like Amazon, as well as entrepreneurs and investors, including billionaire Frank McCourt and Reddit founder Alexis Ohanian. Despite the potential buyers, the deal is still not completed, and any agreements must pass through approval by Chinese authorities.
It is reported that the White House is in contact with four different groups that could become the new owners of TikTok, including well-known corporations and private investment firms. It is possible that the US will offer China a deal where TikTok is sold, and in return, China will receive tariff relief.
The Role of Tariffs in the Negotiations
Trump emphasized that the imposed tariffs are an important tool for foreign trade and national security. Thus, the US side hopes to use trade restrictions as a significant leverage in negotiations with China. Despite this aspect, the president expressed hope for continued cooperation with Chinese authorities in a spirit of “good faith.”
In response to these developments, China expressed its displeasure and stated that the tariffs contradict market principles. This standoff is unlikely to end soon, but it is important that the discussions are ongoing.
Outlook for the Situation
Negotiations regarding the sale of TikTok may continue for several months. The main issues the parties face are agreeing on the terms of the deal, the need for approval by Chinese authorities, and tariff-related concerns. It is still unclear which of the potential buyers will prevail in this process, but one thing remains clear: the deal has strategic significance for both the US and China.