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Trump says he’ll extend TikTok deadline again as ByteDance divestiture talks stall over tariffs

Trump says he’ll extend TikTok deadline again as ByteDance divestiture talks stall over tariffs

FP News Desk May 4, 2025, 21:57:24 IST

Talks of a potential spinout deal, in which TikTok’s US operations would be transferred to a new entity owned and controlled by American investors, have been ongoing. However, momentum reportedly stalled due to Trump’s sweeping tariffs on Chinese imports

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Trump says he’ll extend TikTok deadline again as ByteDance divestiture talks stall over tariffs
A 3D-printed miniature model of U.S. PresidentDonald Trump and TikTok logo are seen in this illustration. File image/ Reuters

US President Donald Trump signalled he is willing to once again extend the deadline for China-based ByteDance to divest TikTok’s US assets, postponing a potential high-stakes tech and geopolitical standoff deeper into the summer.

In an interview for NBC’s “Meet the Press,” set to air Sunday (May 4), Trump said he would extend the June 19 deadline if a deal hasn’t been finalised, adding that he has a “sweet spot” for the app that helped him connect with younger voters during his 2024 campaign.

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“TikTok is - it’s very interesting, but it will be protected.” Trump said from his Mar-a-Lago estate.

The reprieve marks the third time Trump has delayed enforcement of a law mandating that TikTok cease operations in the US unless ByteDance relinquishes control of the app’s American business. The original compliance date was January 19, the day before Trump was sworn in for a second term. He pushed that to early April and then to June 19.

Talks of a potential spinout deal, in which TikTok’s US operations would be transferred to a new entity owned and controlled by American investors, have been ongoing. However, momentum reportedly stalled after Beijing bristled at Trump’s surprise announcement of sweeping new tariffs on Chinese imports, including a 145 per cent levy on electric vehicles, last month. China has so far signaled it would not greenlight a forced sale of TikTok, a position it has held consistently.

Reuters cited one source close to ByteDance’s US investors as saying last month that work on the prospective deal continues ahead of the June 19 deadline, but the White House and Beijing would need to resolve the tariff dispute first.

Tariffs complicate TikTok’s future

Trump remains adamant that his new tariff regime is non-negotiable, suggesting that any lowering would come later — possibly as part of a broader deal with Beijing. “At some point, I’m going to lower them because otherwise, you could never do business with them,” he told NBC. “And they want to do business very much.”

His comments come amid sharp pushback from Democratic lawmakers, many of whom argue that Trump lacks legal authority to continue extending the divestiture deadline, particularly after Congress passed legislation compelling ByteDance to act.

They also question whether the structure of the proposed deal would satisfy US national security concerns about data access, moderation policies, and algorithmic control— core issues that fueled bipartisan support for a forced sale in the first place.

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TikTok’s political edge

While national security remains the public rationale for divestment, Trump’s embrace of TikTok’s influence suggests a more complicated calculus. The former president acknowledged the app’s role in expanding his reach among younger Americans, a demographic he struggled with in 2020 but improved on in 2024.

That could help explain Trump’s reluctance to shut down the platform entirely, even as he doubles down on his “America First” trade policy. “It helped me win,” he said plainly.

What’s next

With the June 19 deadline looming, stakeholders across the board— ByteDance, US investors, regulators, and the Chinese government — now face another period of uncertainty. For TikTok creators and brands that rely on the platform’s massive US user base of 170 million, the extension may offer temporary relief, but little long-term clarity.

The Biden administration had previously taken a more hardline stance on the app, but it is now Trump’s White House that must navigate one of the most consequential tech policy showdowns in recent memory.

With inputs from Reuters

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