TikTok Gets Another Lifeline—But Uncertainty Looms

In a high-stakes move that’s keeping tech investors, Washington, and millions of creators on edge, President Trump has granted TikTok a second 75-day extension to avoid a total ban in the U.S.

Author

sean h
April 05, 2025

🚨 The decision gives ByteDance, TikTok’s China-based parent company, a little over two months to finalize a sale of its U.S. operations. If they don’t, TikTok faces a complete shutdown on American soil—a prospect that could impact over 170 million U.S. users, thousands of small businesses, and a major piece of Gen Z internet culture.

“We do not want TikTok to ‘go dark,’” Trump said in a brief statement, signaling that while a ban is still on the table, a deal is preferred.

A Deal Within Reach—Until Tariffs Shook the Table

According to insiders, talks to sell TikTok’s U.S. branch were close to the finish line. But the landscape changed dramatically after President Trump introduced a sweeping new round of global tariffs, targeting a wide range of imports—including from China.

The tariffs were reportedly not expected by the Chinese government or the companies involved, and have since slowed negotiations significantly. Beijing, reacting strongly to the new trade measures, reportedly stepped back from a nearly finalized deal, citing the new tariffs as an unacceptable move that complicates any potential sale.

ByteDance issued a public statement confirming that “key matters remain unresolved,” citing both Chinese export laws and the recent U.S. tariff spike as major challenges.

A Sale or Sanctions? Trump’s Strategic Gamble

The White House appears to be using TikTok as both a tech issue and a trade tactic. Trump has floated an incentive: if ByteDance sells TikTok’s U.S. arm, some tariff relief may be on the table.

That offer turns the situation into a political chess match. TikTok is no longer just a social media platform—it’s now a bargaining chip in a broader trade war.

Meanwhile, lawmakers on both sides of the aisle are watching closely. Some view the TikTok sale as a necessary step to protect user data and national security. Others worry about government overreach and the precedent it sets for digital freedom.

A Bidding War Heats Up

Despite the complications, the list of potential buyers is growing—and fast. The latest name to emerge? Amazon, which would mark a bold and unexpected expansion into social media if a deal were to happen.

They join a crowded and diverse pool of interested parties, including:

  • Microsoft, which has pursued TikTok before

  • Blackstone, the global investment firm

  • Alexis Ohanian, Reddit co-founder and tech investor

  • Perplexity AI, a rising artificial intelligence company hoping to scale its influence

President Trump says four serious bidders are currently in negotiations, though he declined to name them.

What’s Next?

With the deadline clock ticking, the future of TikTok in the U.S. is hanging in the balance. The situation is now about more than just viral dances and memes—it’s a collision of tech, politics, and international trade strategy.

Will ByteDance make the sale? Will China approve it? Will the U.S. actually follow through on a ban if negotiations fall apart?

For now, TikTok remains live—but its fate could change fast.