A deal to sell TikTok’s U.S. operations has collapsed, with sources citing President Donald Trump’s China tariffs as the key factor that derailed the agreement at the last minute.
NBC News reports that an agreement had been reached by Wednesday, but the recent wave of tariffs imposed by Trump created a new complication. ByteDance, TikTok’s Chinese parent company, allegedly informed the White House that the Chinese government would not approve the sale unless broader trade talks, including potential tariff relief, were included in the negotiations.
In a bid to salvage the deal, Trump extended the sale deadline by 75 days on Friday, giving more time to find a non-Chinese buyer.
Trump had been ready to sign an executive order that would have allowed TikTok’s U.S. operations to be spun off into a new company based in the U.S., with majority ownership by American investors. ByteDance would have kept a minority, non-controlling stake. The order also included a 120-day period to finalize the deal’s legal and financial details.
According to a law passed in 2024, ByteDance must divest its stake in TikTok’s U.S. business or face a ban on the app in the United States.
