Due to the leakage of user personal information, the U.S. government demanded that TikTok must sell itself or face a ban. April 5 was the deadline, but both the U.S. and China failed to reach an agreement. Trump announced a 75-day extension for the deadline and proposed that if China was willing to sell, tariffs could be considered for reduction. Despite Oracle and Walmart being potential buyers, the deal has not materialized. With the tariff issues escalating, TikTok's future has become a new focal point in the U.S.-China trade war. Trump believes that TikTok's importance to young voters makes this contest even more complex.
Due to the controversy over the leakage of user personal data, the U.S. government has demanded that TikTok must be sold; otherwise, it will be banned from operating, and this deadline is approaching on April 5. However, the negotiations between the U.S. and China failed to reach a consensus, especially after the tariff war initiated by Trump, causing all agreements to be shelved.
Now, Trump has stepped in to help break the deadlock, extending TikTok's deadline by 75 days and showing goodwill toward China by stating that if they are willing to sell, he will consider reducing tariffs.
For Trump, April 5 is a tricky day as TikTok faces a significant decision.
Trump previously stated that he won with a 34% support rate among young voters and mentioned that this has some relationship with TikTok. He publicly praised TikTok after his election, but commercially, he faces the issue of having to address the matter within the deadline. Although previous deals failed, Trump has decided to extend the deadline by 75 days at this time.
According to reports, Oracle has been the frontrunner in the bidding, and founder Larry has close ties with Trump. The White House proposed the establishment of a new company called TikTok America, where 50% of the shares will be held by new American investors.
There were rumors that American retailer Walmart might also become a buyer, but Walmart later denied those claims. Insiders revealed that the structure of the deal has essentially been confirmed, with a new company being established, and ByteDance will retain less than 20% of the equity.
However, with the tariff policy effective on April 2, China faces tariffs as high as 54%, which has led to delays in the transaction progress. Trump even stated that if China is willing to sell, he would consider lowering tariffs.
Trump emphasized that this 75-day extension will provide both sides with more time. With the support of the younger generation, TikTok's influence is evident, but under the premise of reciprocal tariffs, China also understands the importance of TikTok to Trump, leading to all related transactions being put on hold, raising expectations for the next round of clashes between the U.S. and China.
