**Washington**: President Trump has announced a 75-day extension for TikTok negotiations, amid soaring U.S.-China trade tensions. As American investors eye ownership, key stakeholders await developments in a complex web of diplomacy, technology, and economics surrounding the social media application.
President Donald Trump has announced a 75-day extension for negotiations concerning TikTok, a popular social media application, marking the second extension of its divestment deadline since he resumed office in January 2025. The announcement, made on April 4, 2025, is set against a backdrop of escalating trade tensions with China, as Trump navigates a complex interplay of tech, economics, and international diplomacy.
In a post on Truth Social, Trump stated, “My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress.” He highlighted that further deliberation is needed to secure all the necessary approvals, linking the TikTok discussions to his broader tariff strategy with China. Trump further noted, “China is not very happy about our Reciprocal Tariffs,” emphasising the use of tariffs as an economic tool tied to national security considerations.
The TikTok saga involves multiple key players. Trump has shifted from an initial stance of banning the app to potentially positioning himself as a champion for its continued operation in the U.S. The president is reportedly reviewing proposals that would allow American investors to gain majority ownership of TikTok’s U.S. operations. Shortly after announcing the extension, he expressed optimism about continuing negotiations, aiming to prevent the app from being “dark.”
On the other side, ByteDance, TikTok’s Chinese parent company, has resisted calls to sell under pressure. A representative from ByteDance commented, “An agreement has not been executed. There are key matters to be resolved,” indicating that any deal would require approval under Chinese law. This reflects the company’s strategy to navigate the conflicting interests of both U.S. and Chinese authorities, particularly in light of recent tariff announcements by the Trump administration.
The situation has also drawn in the Chinese government, which has not publicly commented on the specific negotiations regarding TikTok but continues to uphold the rights of businesses. A spokesperson reiterated China’s opposition to additional U.S. tariffs, suggesting that Beijing is willing to use TikTok as leverage in the wider trade war, including the newly imposed 34% tariffs on Chinese imports.
Vice President JD Vance has emerged as a prominent figure in the negotiations, having led discussions for months. He expressed confidence in reaching an agreement before the original April 5 deadline. Yet, the landscape shifted dramatically following Trump’s tariff announcement, which reportedly caught the administration off guard, as news emerged that China was not ready to approve a TikTok deal until broader trade issues were addressed.
Potential American investors are also keenly interested in TikTok. Companies such as Oracle, Blackstone, Silver Lake, and even tech titan Amazon have expressed intent to acquire the platform’s U.S. operations, underlining its commercial significance, particularly given its 170 million users in the U.S. However, this interest is contingent upon the resolution of larger trade disputes between the U.S. and China, complicating the negotiation process.
The uncertainty surrounding TikTok’s future is most acutely felt by its numerous users and content creators. Reports suggest that around 5 million businesses rely on the platform, and studies predict that if TikTok were to be banned, small U.S. businesses could lose approximately $1 billion in revenue within a month. Creators like Joanne Molinaro have reported a decline in sponsorship deals due to hesitance from brands amidst ongoing uncertainty.
As the 75-day extension progresses, industry insiders and stakeholders await further developments. Trump’s decision to delay the divestment deadline signals a willingness to explore diplomatic avenues rather than impose a definitive ban on the application. The entwinement of TikTok’s fate with broader U.S.-China trade relations will likely dictate the outcome of negotiations, highlighting the intricate connections between technology, commerce, and international diplomacy. The coming weeks will reveal whether a middle ground can be reached that satisfies both American and Chinese interests in this high-stakes scenario.
Source: Noah Wire Services
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