China blocks TikTok deal after U.S. raises tariffs
Beijing delays TikTok deal as U.S.-China tensions flare
A long-anticipated deal to spin off the U.S. assets of TikTok has been paused after the Chinese government signaled opposition, citing rising tensions following President Donald Trump’s announcement of new reciprocal tariffs on Chinese goods.
The agreement—reportedly in final form as of Wednesday, according to two individuals familiar with the matter—would have transferred TikTok’s U.S. operations to a new American-based company majority-owned by U.S. investors, reports Reuters.
Under the proposed terms, TikTok’s Chinese parent, ByteDance, would retain a minority stake of less than 20%. All parties involved, including ByteDance, existing and new investors, and the U.S. government, had approved the deal, one of the sources noted. However, the political backdrop has now complicated its path forward.
China Pushes Back, Trump Extends Deadline
The latest derailment comes just days after Trump imposed an additional 34% tariff hike on Chinese imports, bringing total tariffs to 54%. In response, Beijing issued retaliatory measures and quietly signaled it would withhold approval of the TikTok transaction—a move that re-injected uncertainty into a deal aimed at satisfying national security concerns in Washington.
On Friday, Trump announced an extension of a key deadline that had required ByteDance to divest its U.S. TikTok assets by Saturday under a 2024 law. The new deadline, now set 75 days out, buys time for further negotiations.
“The deal requires more work to ensure all necessary approvals are signed,” Trump posted on Truth Social. “We hope to continue working in good faith with China, who I understand is not very happy about our reciprocal tariffs.”
The fate of TikTok’s U.S. operations remains in limbo as trade tensions escalate. With 170 million American users, the app remains a focal point of broader concerns about data privacy, national security, and the future of U.S.–China tech relations.
Recently we wrote, that Donald Trump has announced that a deal between TikTok and potential buyers must be struck by April 5, or the app will face a possible U.S. ban.
