So it’s D-Day for TikTok, the final day of its 75-day extension to work out a deal in the U.S. to avoid being banned, the final chance for the Trump Administration to wrangle an arrangement that will appease all sides, and keep the app available for American users, and…
President Trump has announced another 75-day extension of the deadline.
As per Trump (on Truth Social):
“My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress. The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days. We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs.”
Yeah, Trump’s large-scale tariffs, which have caused much angst around the world, have also caused an escalation in America’s ongoing rift with China, which has now prompted the Chinese government to refuse the proposed U.S. deal to sell TikTok into U.S. ownership.
The White House had reportedly arranged a deal that would see the U.S. arm of TikTok spun off into a separate entity, which would then be owned by a group of U.S. shareholders. TikTok owner ByteDance would retain a 19.9% stake in the new business, while America would effectively “lease” TikTok’s almighty algorithm, as opposed to taking full ownership of the app.
That, seemingly, would meet all the requirements of the “Protecting Americans from Foreign Adversary Controlled Applications Act,” while also appeasing the Chinese government, which has been opposed to a sale of TikTok’s systems, including its algorithms.
But it seems like the Chinese side has refused to accept the proposal, which has forced Trump to extend the negotiation period.
Which he can’t technically do. The TikTok sell off bill was already approved by the Senate and enacted into law before Trump took office, so technically, right now, TikTok is already banned in the U.S. But Trump has been able to establish a workaround, via executive order, which stops U.S. authorities from enforcing the law at this stage.
But it’s risky. Each U.S. company that enables TikTok to remain in operation in the region faces a $500 per-user fine for the duration of its operation within this period. U.S. Attorney General Pam Bondi has provided written assurances that this will not be enforced, which is why TikTok is still running, but an extension of the negotiation period will theoretically increase those liabilities. Which could spook Apple, Google and Oracle, the three businesses which are taking the government at its word on this element.
But right now at least, TikTok remains in operation in the U.S., and will be available till at least the 18th June.
So, good for users, but not so great for longer-term stability within the app.
