President Donald Trump’s initiatives to enable a U.S. purchase of TikTok have encountered a significant obstacle—his own tough tariff strategies aimed at China.
As highlighted by The Verge, the newly declared global tariffs by the Trump administration, which impose hefty duties on Chinese imports, have substantially derailed ambitions for a U.S.-led acquisition of the widely used video-sharing platform. Oracle emerged as the primary candidate to acquire TikTok via a consortium, proposing to license TikTok’s algorithm, manage data collection, and supervise software updates. Under the arrangement, ByteDance, the parent company of TikTok based in China, would keep a minority ownership stake. Reports indicated that the deal was nearing finalization to comply with a pressing U.S. deadline to divest TikTok or risk a nationwide ban—a deadline that has now been extended.
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Nonetheless, The Verge’s Alex Heath observed that Trump’s declaration of a 34 percent tariff on Chinese imports “destroyed any immediate possibility” of the Chinese government endorsing the deal. The new tariffs have eroded any positive relations established during discussions, making it politically unfeasible for China to approve the transaction.
The Associated Press reported that representatives from ByteDance reached out to the White House, conveying that China would not endorse the deal without more extensive discussions on trade and tariffs. While it’s uncertain if Trump aimed to use the tariffs as a bargaining chip to secure a beneficial TikTok agreement, China reciprocated—implementing its own 34 percent tariff on U.S. goods entering the nation.
In a posting on Truth Social, Trump declared that the deadline for TikTok to sever ties with Chinese ownership or confront a U.S. ban had been pushed back by 75 days. However, the legality of this delay is being challenged. A member of the Senate Intelligence Committee shared with The Verge that such an extension might be “against the law.”
Trump justified the decision by saying that “tremendous progress” had occurred, but more time was necessary to conclude the arrangement.
Meanwhile, TikTok’s future in the U.S. remains in limbo—caught in the crossfire of increasing trade friction and political maneuvering.