On Friday, President Donald Trump announced a 75-day extension for enforcing the TikTok sale-or-ban law. This decision follows disruptions caused by his recent tariff announcement, which derailed a deal aimed at transferring TikTok’s U.S. operations to American ownership.

Trump formalised the delay by signing an executive order, stating 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.”

The extension comes just one day before the ban was set to take effect. ByteDance, TikTok’s Chinese parent company, had previously agreed to divest its U.S. assets under bipartisan legislation passed in 2024 due to national security concerns.

However, negotiations hit a roadblock after Trump imposed a 34 percent tariff on China, prompting Beijing to withdraw its support for the deal. ByteDance representatives informed the White House that further discussions on trade and tariffs were necessary before proceeding with the agreement.

Despite the setback, Trump expressed optimism about finalizing the deal during the extended timeframe. “We do not want TikTok to ‘go dark,’” he emphasized in his social media post.

TikTok’s future hinges on ownership transition

The proposed deal involves converting TikTok’s U.S. operations into a new entity controlled by American investors while ByteDance retains a minority stake of no more than 20 percent. The arrangement also prohibits collaboration with ByteDance on algorithm management or data-sharing practices. Trump’s administration had reportedly finalized terms earlier in the week, but tariff tensions disrupted progress.

TikTok briefly went offline for 14 hours in January before Trump’s initial executive order delayed enforcement of the ban. The app later displayed a message thanking Trump for his efforts to keep it operational in the U.S.

Jeremy Goldman, an analyst at Emarketer, commented that Trump’s strategy keeps TikTok in a state of uncertainty, leveraging its prominence as part of broader geopolitical trade negotiations with China.

As discussions continue, ByteDance has confirmed ongoing talks with the U.S. government but noted unresolved issues requiring approval under Chinese law. Trump’s administration remains committed to finding a resolution that balances national security concerns with uninterrupted access to the platform for millions of American users.