TikTok Deal Stalls After China Responds to New U.S. Tariffs

On April 7, 2025, The New York Times reported that the Trump administration was close to finalizing a deal to restructure TikTok’s ownership in the U.S., aiming to address national security concerns. The proposed agreement would have created a new American TikTok entity, with U.S. investors owning 50% and Chinese parent company ByteDance holding under 20%, in compliance with federal law. Beijing had reportedly shown initial approval of the plan. However, the situation changed abruptly after President Trump announced new tariffs on Chinese imports. Following this, ByteDance informed the White House that the Chinese government would not allow the deal to go forward in response to the tariffs. As a result, the expected executive order to formalize the deal was put on hold. Instead, Trump extended the deadline for TikTok to comply with the ownership law until mid-June, buying time for further negotiation. Trump acknowledged the reversal in comments made aboard Air Force One, noting that a near-final agreement had been disrupted due to escalating trade tensions. The stalled TikTok deal reflects broader geopolitical tensions between the U.S. and China, intertwining tech regulation with international trade policy.