TikTok still in limbo

Photo Courtesy: Tristian Hutton

The United States has extended the deadline for ByteDance, TikTok’s Chinese parent company, to divest its U.S. operations by 75 days, pushing the new deadline to June 19. 

The extension comes in the wake of escalating trade tensions between the U.S. and China, which have complicated negotiations surrounding the popular social media platform.

Initially, President Donald Trump had set a deadline of April 5 for ByteDance to sell TikTok’s U.S. operations or face a nationwide ban. This directive was rooted in national security concerns over potential data access by the Chinese government. 

The plan involved President Trump signing an executive order to approve the deal and initiating 120 days to finalize the necessary paperwork and financing.​

However, on Wednesday, President Trump announced a series of new tariffs, including a 34% increase on Chinese goods, raising the total U.S. tariff on Chinese imports to 65%. In response, representatives from ByteDance contacted the White House on Thursday morning, indicating that the Chinese government would not approve the TikTok deal until negotiations could address these newly imposed tariffs. 

This development has placed the TikTok sale in limbo, effectively making it a bargaining chip in the broader trade dispute between the two nations.​ 

President Trump addressed the situation on his social media platform, Truth Social, stating, “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, so I am signing an Executive Order to keep TikTok up and running for an additional 75 days”. 

The extension has elicited mixed reactions from lawmakers. Senate Intelligence Committee Vice Chair Mark Warner, D-VA, criticized the move, asserting that it undermines national security concerns and defies bipartisan legislation previously upheld by the Supreme Court. 

Conversely, some lawmakers argue that the extension provides a necessary window to negotiate a deal that addresses economic and security concerns.​ 

As the new June 19 deadline approaches, the intertwined issues of international trade policies and national security continue to influence the future of TikTok’s operations in the United States. The outcome of these negotiations will likely have significant implications for U.S.-China relations and the global tech industry.​