Recent developments regarding President Donald Trump’s initiative for a potential U.S. acquisition of TikTok have faced significant obstacles due to his newly imposed tariffs on China.
Reports indicate that the global tariffs introduced may have jeopardized plans for candidates, particularly Oracle, to assume control of the ByteDance-owned application. The White House was reportedly focused on an Oracle-led consortium, which intended to license the app’s algorithm, manage data collection, and oversee software updates while allowing ByteDance to retain a minority stake. This arrangement was expected to be announced just before the delayed TikTok ban deadline.
However, Trump’s tariff declaration severely diminished the prospects of securing approval for the TikTok proposal from the Chinese government. A 34 percent tariff on imports from China has severely impacted negotiations. Recent communications from ByteDance representatives confirmed that China would not approve the deal until trade and tariff discussions could take place.
It remains unclear if Trump’s strategy was to utilize the hefty tariff as leverage in negotiating a TikTok deal, but China has responded with its own 34 percent tariff on U.S. goods. On Friday, Trump announced an extension of the timeline for TikTok to divest from China or face a ban in the U.S. by an additional 75 days. However, the legality of this extension has come under scrutiny, with concerns raised by members of the Senate Intelligence Committee.
The president stated that while substantial progress has been achieved, further time is essential to finalize a deal.
This scenario highlights the complex interplay of global politics and trade relations affecting the future of TikTok in the United States.
