China pauses TikTok deal after Trump announces new tariffs

President Donald Trump said yesterday (4 April) he is signing an executive order to allow TikTok to continue operating in the US for another 75 days, giving his administration more time to finalise a deal to bring the platform under American control.

The White House had been close to striking a deal to separate TikTok's US operations into a new company majority-owned by American investors, with ByteDance retaining a minority stake, a source familiar with the talks said.

However, progress was abruptly halted Thursday when Beijing reacted to Trump's announcement of sweeping new global tariffs, including against China. ByteDance informed the White House that China would not approve any deal until broader negotiations on trade and tariffs take place, the source added.

While Congress had set a 19 January deadline for TikTok's divestment on national security grounds, Trump extended it unilaterally to this weekend to keep negotiations alive. Several US firms had expressed interest in investing in TikTok.

The potential deal, months in the making, was being finalised with help from Vice President JD Vance's team and included support from current and prospective investors, ByteDance, and US officials. It included a 120-day period to finalise details.

Trump's team was confident of Beijing's support until the new tariffs shifted the political landscape. On Friday, Trump said the deal is still achievable during the extension period.

"My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress," Trump wrote on his platform, explaining the need for extra time.

ByteDance confirmed it has been in talks with the US but said no agreement has been finalised and any deal must be approved under Chinese law.

TikTok, headquartered in Los Angeles and Singapore, has reiterated its commitment to user safety. Meanwhile, China's foreign ministry insists it does not require companies to provide data from abroad.

This marks the second time Trump has delayed enforcement of the 2024 law requiring TikTok's divestment, a law supported by Congress and upheld by the Supreme Court on national security grounds.

Rep. Raja Krishnamoorthi, a co-author of the TikTok bill, criticised the delay, urging immediate compliance with the law. "Bidders are lined up, and the clock is ticking. No more excuses," he said.

Although the executive order to delay enforcement has raised concerns, legal experts say a lawsuit is unlikely due to the challenge of establishing legal standing to sue.

Cornell University's Sarah Kreps said maintaining the status quo is legally less vulnerable, though concerns persist. Experts like cybersecurity CEO Chris Pierson warn that if ByteDance retains control of TikTok's algorithm or data, the security risks remain unchanged.

The law allows one 90-day delay if a deal is pending and Congress is notified, but Trump's move doesn't meet those conditions, said legal scholar Alan Rozenshtein. He argues Trump's extension is effectively a refusal to enforce the law, not a legal extension.

Public opinion on TikTok remains divided. A recent Pew survey found one-third of Americans support a ban, down from 50% in 2023, with concerns about data security driving most of the support.

For creators like Terrell Wade, who has 1.5 million TikTok followers, the uncertainty is wearing. "Each new deadline feels less serious," he said, though he continues building his presence on Instagram, YouTube, and Facebook.

"I just want clarity," he said, "so we can move on from the constant uncertainty."