President Donald Trump has once again extended the deadline for ByteDance, the parent company of TikTok, to divest its U.S. operations or face a potential ban. This marks the second time Trump has taken such action, signaling his ongoing stance on national security concerns surrounding the popular social media app.
In a post on his Truth Social platform on Friday, Trump announced the extension, stating that the deal for ByteDance to sell TikTok’s U.S. operations “requires more work to ensure all necessary approvals are signed.” He added that the extension would keep TikTok operating for an additional 75 days, pushing the deadline to mid-June.
“We hope to continue working in good faith with China, who I understand are not very happy about our Reciprocal Tariffs (necessary for fair and balanced trade between China and the U.S.A.),” Trump wrote, referencing his trade policies that have been a significant aspect of his foreign policy.
The decision to extend the deadline comes amid ongoing discussions between ByteDance and U.S. officials, with the company stating that any agreement to sell the U.S. operations of TikTok would still need to comply with Chinese law. A ByteDance spokesperson confirmed to CNBC that the agreement has not yet been finalized and that several key issues remain unresolved.
ByteDance was originally under pressure to complete the sale by April 5, as part of a broader national security law signed by former President Joe Biden in April 2024. This law mandates the divestiture of foreign-owned businesses operating critical infrastructure or applications in the U.S. that are deemed to pose a national security risk. TikTok, with its widespread use among American users, was targeted as part of these concerns.
Initially, ByteDance faced a deadline of January 19 to sell its U.S. operations. However, upon Trump’s arrival in office, he signed an executive order extending the deadline by 75 days. While the law could have imposed penalties on app store operators like Apple and Google for hosting TikTok, Trump’s order directed the U.S. Attorney General to refrain from enforcing the penalties.
In a dramatic turn, Apple and Google removed TikTok from their app stores just before the law was set to take effect. However, TikTok returned to the app stores within 24 hours after Trump indicated he would take executive action. Since then, TikTok has remained available for download on both the Apple App Store and Google Play.
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Various companies have shown interest in acquiring TikTok’s U.S. operations. Tech giants such as Oracle and AppLovin have expressed interest, with Amazon making a last-minute bid to purchase the app, CNBC confirmed. Additionally, a group of private equity firms, including Andreessen Horowitz, Blackstone, and others, have proposed a deal in which they would own approximately half of TikTok’s U.S. business. In this scenario, TikTok’s existing investors—General Atlantic, Susquehanna, KKR, and Coatue—would retain about 30% of the U.S. operations.
Billionaire Frank McCourt, through his Project Liberty consortium, has also expressed interest in acquiring TikTok’s U.S. assets. McCourt’s initiative gained further traction in March when Reddit co-founder Alexis Ohanian, an influential figure in the tech world, announced his support for the venture. Additionally, the startup Perplexity has put forward a proposal to merge with TikTok’s U.S. operations, an option that is also being considered.
Despite these ongoing discussions, the deal faces another significant hurdle: the Chinese government’s approval. Since China is ByteDance’s home country, any potential sale would require clearance from Chinese authorities, who have expressed concerns over the potential loss of control over the platform’s U.S. operations.
In his Truth Social post, Trump emphasized the importance of tariffs as an economic tool and its connection to national security. “This proves that tariffs are the most powerful economic tool, and very important to our national security!” he wrote. “We do not want TikTok to ‘go dark.’ We look forward to working with TikTok and China to close the deal. Thank you for your attention to this matter!”
The announcement came on the heels of a broader trade policy that Trump signed earlier in the week. The policy includes a 34% tariff rate on Chinese goods, which, when combined with existing tariffs, brings the total tariff rate to 54%. Trump has previously indicated that he might consider reducing tariffs on China to facilitate the completion of the TikTok deal, signaling the interconnected nature of trade negotiations and national security concerns.
In the midst of these developments, Vice President JD Vance hinted that a deal could be reached by the April deadline. “There will almost certainly be a high-level agreement that satisfies our national security concerns and allows for the creation of a distinct American TikTok enterprise,” Vance said in an interview with NBC News last month.
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The ongoing saga surrounding TikTok underscores the growing tensions between the U.S. and China over technology and national security. The app’s immense popularity in the U.S., combined with concerns about potential data sharing with the Chinese government, has made TikTok a focal point in the broader geopolitical struggle. While Trump’s administration has maintained a tough stance on the issue, the resolution of the TikTok dilemma will require a delicate balancing act between economic interests, security concerns, and international diplomacy.
As the clock ticks toward the mid-June deadline, all eyes will remain on ByteDance and the U.S. government as they navigate the complexities of this high-stakes negotiation. If no agreement is reached by the new deadline, the fate of TikTok in the U.S. could be sealed, with a potential ban looming on the horizon.
