A proposed deal to sell TikTok’s U.S. operations has fallen apart, with insiders blaming President Donald Trump’s tariffs on China for derailing the agreement at the last minute.
According to NBC News, a deal had been reached by Wednesday, but the recent wave of tariffs imposed by Trump created a new obstacle. ByteDance, TikTok’s Chinese parent company, reportedly informed the White House that the Chinese government would not approve the sale unless broader trade negotiations—including tariff relief—were on the table.
In an effort to keep the deal alive, Trump on Friday extended the deadline for the sale by 75 days to allow more time to secure a non-Chinese buyer.
Trump had been prepared to sign an executive order that would have allowed TikTok’s U.S. operations to be spun off into a new American-based company, with a majority ownership by U.S. investors. ByteDance would have retained a minority, non-controlling stake. The order also included a 120-day window to finalize the agreement’s legal and financial terms.
Under a law passed in 2024, ByteDance must divest its ownership of TikTok’s U.S. arm or face a ban on the app in the United States.
