President Donald Trump on Friday extended by 75 days a deadline for Chinese technology company ByteDance to sell US assets of popular short video app TikTok to a non-Chinese buyer or face a ban that was supposed to have taken effect in January under a 2024 law.
“The deal requires more work to ensure all necessary approvals are signed,” Trump said on social media, explaining why he was extending the deadline he set in January that was supposed to have expired on Saturday. “We hope to continue working in good faith with China, who I understand is not very happy about our reciprocal tariffs.”
Markets around the world are still reeling after the US imposed the highest trade barriers in more than a century.
China now faces a 54 percent tariff on goods imported into the United States after Trump announced he was hiking them by 34 percent this week, prompting China to retaliate on Friday. Trump has said he would be willing to reduce tariffs on China to get a deal done with ByteDance to sell the app used by 170 million Americans.
Trump has said his administration was in touch with four different groups about a prospective TikTok deal. He has not identified them.
A major stumbling block to any deal for TikTok’s US business is Chinese government approval. China has not made a public commitment to allow a sale and Trump’s comments suggested renewed Chinese opposition.
“We look forward to working with TikTok and China to close the deal,” Trump wrote on Friday.
“We do not want TikTok to ‘go dark,‘” Trump added.
Congress passed the measure last year with overwhelming bipartisan support, as lawmakers cited the risk of the Chinese government exploiting TikTok to spy on Americans and carry out covert influence operations. Democratic then-President Joe Biden signed it into law.
Some lawmakers have said Trump must enforce the law, which had required TikTok to stop operating by Jan. 19 unless ByteDance had completed a divestiture of the app’s US assets. Trump began his second term as president on Jan. 20 and opted not to enforce it.
The Justice Department earlier told Apple and Google that it would not enforce the law, which led them to restore the app for new downloads.
The new Trump order will set a mid-June deadline for a deal.
The White House-led talks on the future of TikTok are coalescing around a plan for the biggest non-Chinese investors in parent company ByteDance to increase their stakes and acquire the app’s US operations, Reuters has reported.
The plan entails spinning off a US entity for TikTok and diluting Chinese ownership in the new business to below the 20 percent threshold required by US law, rescuing the app from a looming US ban, sources have told Reuters.
Jeff Yass’ Susquehanna International Group and Bill Ford’s General Atlantic, both of which are represented on ByteDance’s board, are leading discussions with the White House, Reuters has reported.
Walmart is also considering joining a group of investors in a deal for TikTok, an ABC News reporter said on social media. The big retailer, which had expressed an interest in investing in TikTok in 2020, did not immediately respond to a Reuters request for comment.
TikTok did not immediately respond to a request for comment.
By David Shepardson and Dawn Chmielewski; Edited by Chizu Nomiyama, David Gregorio and Will Dunham
Learn more:
Trump Says He May Give China Reduction in Tariffs to Get TikTok Deal Done
US President Trump said on Wednesday he would consider reducing tariffs on China to confirm a deal for the sale of TikTok by Chinese parent ByteDance, Reuters reported. Trump also said he would be willing to extend the April 5 deadline.
Content shared from www.businessoffashion.com.
