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News

Trump Extends TikTok Divestment Deadline Amidst Trade Tensions with China

Genesis Obong
By Genesis Obong
Published: April 5, 2025
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4 Min Read
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In a move that underscores the complex intersection of technology, national security, and international trade, the deadline for ByteDance to divest its U.S. operations of TikTok has been extended once again. The extension, granted by the administration, provides an additional 75 days, citing the need for further regulatory approvals.

“My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress,” the post relayed via social media. “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.”

This decision comes amid ongoing concerns that ByteDance’s ties to the Chinese government could pose national security risks. U.S. lawmakers have repeatedly raised alarms about potential data collection and influence operations facilitated by the popular social media platform. The initial deadline of January 19, 2025, one day before the inauguration, prompted reactions from tech giants and users alike. Temporary removals from app stores and service disruptions underscored the urgency of the situation. As this news develops, I think it is important to reflect on the large amount of users that rely on the platform.

The extension of the deadline, previously delayed until April 5, 2025, indicates a strategic pause to allow for more nuanced negotiations. Notably, this deal remains contingent on approval from the Chinese government, introducing a layer of international diplomacy into the already intricate scenario.

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Adding to the complexity, trade tensions between the U.S. and China remain a significant factor. “We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs,” the administration expressed. Recent tariff increases, including a sweeping “reciprocal tariff” policy that raised rates on Chinese imports to 54%, highlight the administration’s stance on trade imbalances and national security. “This proves that Tariffs are the most powerful Economic tool, and very important to our National Security! We do not want TikTok to ‘go dark.’”

Read Also: TikTok, Truecaller Under Scrutiny: NDPC Intensifies Privacy Probe

The potential acquisition of TikTok’s U.S. operations has drawn considerable interest from various entities. Amazon, a consortium led by OnlyFans founder Tim Stokely, and artificial intelligence startup Perplexity have all emerged as potential buyers. A bid backed by billionaire Frank McCourt’s Project Liberty, also involving YouTube personality MrBeast (Jimmy Donaldson), remains within the running. Adding to that, the venture capital firm Andreessen Horowitz has been involved in talks relating to the Oracle, and other U.S. investor bid. This illustrates the high-stakes nature of the deal and the diverse range of stakeholders involved.

As the extended deadline approaches, the future of TikTok’s U.S. operations remains uncertain, subject to both domestic regulatory processes and international negotiations. The outcome of these developments will likely have far-reaching implications for the tech industry, international trade, and national security.

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TAGGED:AcquisitionByteDanceChinaDivestmentDonald TrumpTikTokTrade Tariffs
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ByGenesis Obong
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Genesis Obong is a Journalist with relevant experience in Business, Finance and Economic matters in Nigeria and across the West African space.
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