Trump Grants Another Extension in TikTok U.S. Sell-Off Negotiations

TikTok has been granted yet another lifeline in the U.S. as President Donald Trump announces a second 75-day extension for ByteDance to reach a deal that will satisfy U.S. national security concerns and prevent the app from being banned.

This comes at the close of the initial 75-day grace period, itself an extension of the deadline mandated by the "Protecting Americans from Foreign Adversary Controlled Applications Act," passed before Trump returned to office. Technically, TikTok is already banned under the law. But through executive order, Trump has paused enforcement, allowing the app to remain operational—at least for now.

Trump’s Statement

Posting on Truth Social, Trump said:

“My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress... I am signing an Executive Order to keep TikTok up and running for an additional 75 days.”

He also referenced the ongoing trade tensions with China, noting that negotiations continue “in Good Faith,” despite Beijing’s opposition to U.S. demands related to data control and algorithm ownership.

What’s the Deal on the Table?

The U.S. proposal reportedly involves spinning off TikTok’s American business into a new, majority U.S.-owned entity. Under the terms:

• ByteDance would retain a 19.9% minority stake.

• The U.S. would license TikTok’s algorithm, rather than owning it outright.

The structure was designed to meet both American regulatory concerns and China’s resistance to the sale of TikTok’s core technology. But China has rejected the proposal, effectively stalling the deal and prompting the new extension.

Legal Gray Zone

The law mandating TikTok’s divestment is already in effect. Trump's executive order does not override that statute but has created a non-enforcement window, during which U.S. companies assisting TikTok’s operations avoid penalties—despite the technical ban.

Still, this workaround introduces legal and financial risk. Under the law, U.S. firms enabling TikTok could face fines of $500 per user, per day. Attorney General Pam Bondi has issued written assurances that these penalties will not be enforced, a promise recently reaffirmed.

However, ongoing ambiguity may raise concerns among TikTok’s infrastructure partners, notably Apple, Google, and Oracle, who are relying on the administration’s assurances.

ByteDance Responds

In a brief statement, ByteDance said:

“ByteDance has been in discussion with the U.S. Government regarding a potential solution for TikTok U.S. An agreement has not been executed. There are key matters to be resolved. Any agreement will be subject to approval under Chinese law.”

This underscores the challenge: any U.S. resolution must also pass muster with Chinese regulators, further complicating negotiations.

What’s Next?

TikTok will remain available in the U.S. until at least June 18, but the broader question of its long-term future remains unanswered. With rising tensions between the U.S. and China—particularly in light of new reciprocal tariffs and regulatory disputes—a clean resolution looks increasingly difficult.

For now, TikTok users can breathe a temporary sigh of relief. But until a binding agreement is reached and approved on both sides of the Pacific, the platform’s U.S. operations remain on unstable ground.