TikTok deal halted amid China tariff objections

TikTok’s U.S. asset deal stalled due to China’s objections over tariffs, delaying compliance with U.S. divestiture requirements.

In Short

TikTok’s U.S. asset sale has stalled due to China’s disapproval, despite President Trump’s deadline extension for ByteDance to divest or face a ban.

Ongoing negotiations involve potential changes in ownership stakes and a new deadline for talks in mid-June.

A planned deal for the sale of TikTok’s U.S. assets has been halted after China expressed disapproval. This follows President Trump’s announcement extending the deadline for ByteDance to divest its U.S. ownership.

On Friday, Trump extended the deadline by 75 days, allowing more time for ByteDance to either sell its U.S. assets to a non-Chinese buyer or face a ban. The deal was reportedly close to finalisation but Chinese approval is now a key issue, as stated by ByteDance.

Big challenges

In a statement, the company noted ongoing talks with the U.S. government but indicated significant differences remain on several issues. The Chinese Embassy reiterated its position, asserting that China respects the rights of enterprises while opposing market violations.

This situation is further complicated by recent tariffs imposed by Trump, leading to retaliatory measures from China. The president has stated he is willing to reduce tariffs to facilitate a deal with ByteDance.

Additionally, there are ongoing discussions about increasing stakes for major non-Chinese investors in ByteDance while reducing Chinese ownership to below the legal threshold. Some lawmakers continue to push for enforcement of a law mandating TikTok to cease operations unless divestiture is completed.