TikTok's Fate in the U.S. Hangs in the Balance as Trump Extends ByteDance Deadline Again
President Donald Trump has once again extended the deadline for ByteDance, the Chinese parent company of TikTok, to divest its U.S. assets, delaying a potentially historic ban on the app that serves 170 million American users.
“We have a deal with some very good people, some very rich companies that would do a great job with it, but we’ll have to wait and see what happens with China,” Trump told reporters in the Oval Office. “It’s very much on the table.”
Deal Details and Legal Disputes
The proposed deal, which must be completed before June 19, would result in a new U.S.-based company, majority-owned and operated by American investors, effectively diluting ByteDance's Chinese ownership. However, sources confirm that no final agreement has been reached.
"This transaction would require full separation of U.S. operations and compliance with American ownership laws," according to individuals close to the negotiation.
Despite this, top Democratic Senators, including Mark Warner and Ed Markey, argue that Trump lacks the legal authority to extend the deadline. Warner added that the proposed structure may not meet legal standards under existing U.S. regulations.
Roadblocks: Congress and China
Efforts to push legislative backing also hit resistance this week. On Wednesday, Senator Markey’s bill to extend the divestment deadline to October was blocked on the Senate floor.
Meanwhile, Senate Intelligence Committee Chairman Tom Cotton warned that no American investor would receive Congressional protection if they proceed with partial deals tied to Chinese entities:
“If you’re looking to make a half-baked deal with Communist China, Congress will never shield you.”
Chinese Approval Still Uncertain
A major unresolved hurdle remains: Chinese government approval. A source familiar with ByteDance's U.S. investors said that while deal discussions continue, they are contingent on resolving the ongoing trade dispute between Washington and Beijing.
The original U.S. law mandated TikTok to cease operations by January 19, unless ByteDance divested. However, President Trump — who began his second presidential term on January 20 — opted not to enforce the mandate.
Moreover, in January, the Department of Justice informed Apple and Google that it would not enforce the law — leading the tech giants to reinstate TikTok for new downloads.
What’s Next for TikTok?
TikTok has not commented on the current developments.
The June 19 deadline remains a pivotal moment for one of the world’s most downloaded social media platforms. Whether a compromise is struck or a ban enforced may depend as much on diplomacy as on business.
