TikTok’s fate in the United States hangs in the balance, with a potential sale, a ban, or even a larger trade deal on the table. President Trump has demanded that the popular social media platform be sold to an American company, or face a ban in the US market. This mandate stems from national security concerns surrounding TikTok’s Chinese parent company, ByteDance.
However, the path to a sale is far from smooth. ByteDance appears to be playing a waiting game, likely influenced by the Chinese government. This hesitation comes amidst escalating trade tensions between the US and China, with tariffs being imposed on goods from both sides. Experts now believe that China is likely to adopt a more assertive stance on the TikTok sale, potentially using it as leverage in broader trade negotiations with the Trump administration. They reportedly hope to achieve a “grand deal” involving concessions on trade and technology policies in exchange for allowing the sale to proceed.
The situation escalated further in January when TikTok was removed from the US App Store and Google Play following a new law deeming the app illegal due to national security risks. ByteDance subsequently disabled the service in the US in compliance with the law. Although TikTok’s service was restored after President Trump signed an executive order, the order still mandates the transfer of ownership to a US buyer within a specified timeframe. Failure to comply with this requirement would likely result in a permanent ban.
Despite the looming deadline, the TikTok app remains unavailable on major app stores. While discussions regarding potential buyers have included prominent figures like Elon Musk and Kevin O’Leary, and even the possibility of a US government purchase, the future of TikTok in the US remains uncertain.
Meanwhile, the US-China relationship continues to deteriorate. Beyond the ongoing tariff war, China is reportedly considering antitrust investigations into American tech giants like Google and Apple. China has also officially filed complaints against the US tariffs with the World Trade Organization (WTO).
With 170 million US users, TikTok’s presence is significant, which explains President Trump’s interest in “saving” the platform for the American market. Whether he will yield if China refuses to allow a sale without economic concessions remains to be seen. However, further escalating tensions and complex negotiations are almost certain before a final resolution is reached.
