Negotiations to transfer the American segment of TikTok under the control of U.S. investors have abruptly stopped. According to Politico, the deal had been fully agreed upon and was expected to be announced in the coming days. However, Beijing refused to approve it after the Trump administration imposed new tariffs on Chinese imports. ByteDance has notified the White House that China no longer supports the sale.
What the Deal Entailed
Sources indicated that TikTok was to be placed under the control of American investors, with Chinese parent company ByteDance retaining only a minority stake. This arrangement was in line with Washington’s requirement to divest Chinese assets in the U.S. on national security grounds.
A public announcement of the deal had been expected before the expiration of the previously set deadline. However, the agreement collapsed after the White House imposed an additional 34% tariff on Chinese imports, citing “Beijing’s abuse of global trade rules.”
Tariff War Escalates
Immediately after the tariff hike, the Chinese side informed the U.S. that it would no longer approve the deal. On the following day, April 5, Trump signed an order extending the TikTok sale deadline by 75 days — until June 19. On April 10, tariffs on Chinese goods were raised even further — to 125%, amid Trump’s public remarks about “China’s disrespect for global markets.”
Meanwhile, tariffs for several other countries were temporarily reduced to 10% for a 90-day period to allow room for negotiations. According to Politico, China’s refusal to review the TikTok deal may be a direct response to Washington’s selective tariff policy.
TikTok Remains Under Threat of Ban
The White House continues to insist that TikTok, which has over 170 million American users, poses a national security risk. The main concern is the platform’s Chinese ownership and potential access to user data. A sale to American investors is considered a mandatory condition for TikTok to continue operating in the U.S.
Vice President JD Vance has been appointed lead negotiator, but sources close to his team describe the process as a “waiting game.” Amid rising tensions with China, Trump stated he still hopes for a successful outcome. According to him, “there’s a great offer on the table from very reliable, very wealthy companies,” but the next steps depend on Beijing’s actions.
Who Might Buy TikTok
Despite the collapse of the current deal, interest in TikTok remains strong. It was previously reported that a bid to acquire the U.S. segment of the platform was submitted by social app Zoop — a project founded by OnlyFans creator Tim Stokely. The bid, made in partnership with the HBAR Foundation, has already been submitted to the Trump administration.
Other potential buyers include Amazon, Microsoft, Oracle, video platform Rumble, and billionaire Frank McCourt. YouTuber MrBeast has also expressed interest. Microsoft had previously been in talks in 2020 but was passed over in favor of Oracle, whose deal also failed to materialize.
Congress Divided Over Extension
Meanwhile, several senators opposed extending the deadline and questioned the legality of Trump’s actions. Senators Mark Warner and Ed Markey stated that the president lacks the authority to unilaterally extend the deadline and that the current terms do not meet legal standards.
Markey’s attempt to postpone the mandatory TikTok sale until October was rejected by the Senate on April 9. Under existing law, ByteDance was required to divest the asset by January 19, 2025. Trump has already extended the deadline twice, citing the need for more time to negotiate.
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