Negotiations for the sale of TikTok in the US may be interrupted after Trump's tariff hike.
China signals possible rejection of the agreement in response to US tariff measures.
247 - Negotiations for the sale of TikTok's US operations have been suspended after the Chinese government indicated it would not approve the deal, in response to recent tariffs imposed by US President Donald Trump, according to two sources cited by Reuters.
The agreement, which was in an advanced stage, envisioned the creation of a new US-based company responsible for TikTok's operations in the country. American investors would hold the majority of the shares, while ByteDance, the Chinese company that owns the app, would retain a minority stake of less than 20%. The proposal already had the approval of current investors, new investors, ByteDance, and the US government.
Escalation in the trade war between the US and China.
The suspension of negotiations comes amid escalating trade tensions between Washington and Beijing. President Donald Trump recently announced a 34% increase in tariffs on Chinese goods, raising the total rate to 54%. In response, China filed a formal complaint with the World Trade Organization (WTO), alleging that the new tariffs violate international regulations.
TikTok as a strategic tool in negotiations
TikTok, with approximately 170 million users in the United States, has become a central point in negotiations between the two countries. During his reelection campaign, Trump expressed concerns about Chinese ownership of the app, citing national security issues.
However, after gaining popularity among young voters through the platform, his stance seemed to soften. Recently, Trump suggested he could offer tariff relief to China if the Chinese government approved the sale of TikTok to an American company.
The future of TikTok in the US is uncertain.
With the current impasse, the future of TikTok in the United States remains uncertain. President Trump extended by 75 days the deadline for ByteDance to sell the app's US operations to a non-Chinese buyer, or face a ban that was supposed to take effect in January, according to a 2024 law. Trump stated that "the deal requires more work to ensure all necessary approvals are signed" and expressed a desire to continue working in good faith with China.
