Trump Extends TikTok Sale Deadline, Awaiting Finalized Deal

President Donald Trump has once again extended the deadline for China-based ByteDance to sell its U.S. operations of TikTok, marking the second such extension. This decision comes amidst ongoing negotiations and national security concerns surrounding the popular social media platform.

Trump announced the extension on his Truth Social platform, stating that the TikTok deal "requires more work to ensure all necessary approvals are signed." The new deadline gives ByteDance an additional 75 days, pushing it to mid-June. In his post, Trump expressed hope for continued good faith collaboration with China, acknowledging their displeasure with reciprocal tariffs imposed by the U.S.

A Timeline of Extensions and Negotiations

The original deadline for ByteDance to divest its U.S. business was January 19. However, Trump, upon assuming office on January 20, signed an executive order granting the company a 75-day extension to finalize a deal. This initial extension averted an immediate ban on TikTok in the U.S.

A national security law signed by former President Joe Biden in April 2024 imposed a requirement on ByteDance for a "qualified divestiture" of TikTok's U.S. operations, with a deadline set for April 5. Prior to Trump's latest extension, this deadline loomed as a significant hurdle.

The situation reached a critical point in early 2024 when Apple and Google removed TikTok from their respective app stores on the eve of the initial deadline. The move prompted temporary shutdowns for American users before Trump intervened by announcing his intention to sign an executive order. This led to TikTok's reinstatement on the App Store and Google Play in February.

Competing Bids and Interested Parties

Over time, various entities have expressed interest in acquiring TikTok's U.S. assets. These include tech giants like Oracle and AppLovin, as well as investment firms such as Andreessen Horowitz, Blackstone, General Atlantic, Susquehanna, KKR, and Coatue.

Recently, Amazon made a last-minute bid to purchase TikTok, adding another layer of complexity to the already intricate bidding process. Additionally, billionaire Frank McCourt and his Project Liberty consortium, backed by Reddit co-founder Alexis Ohanian, have also thrown their hat in the ring.

Further fueling the competition, startup Perplexity proposed a merger with TikTok's U.S. operations, adding yet another dimension to the potential ownership landscape.

The Role of Tariffs and National Security

Trump's recent signing of a "reciprocal tariff" policy imposing a 34% rate on Chinese imports has significantly raised the stakes in the TikTok saga. Coupled with existing 20% tariffs, the true tariff rate on China now stands at a hefty 54%.

The president has previously hinted at the possibility of reducing these tariffs to facilitate a TikTok deal, indicating that economic pressure is a key factor in the ongoing negotiations.

National security concerns remain a paramount consideration. The U.S. government is particularly wary of the potential for user data collected by TikTok to be accessed by the Chinese government.

Addressing these concerns, Vice President JD Vance expressed confidence last month that a high-level agreement could be reached by the April deadline, ensuring national security while allowing for a distinct American TikTok enterprise.