A planned deal to divest TikTok’s U.S. assets has been put on hold after China objected in response to U.S. President Donald Trump’s recent tariff hike, according to sources familiar with the matter.
Trump announced on Friday a 75-day extension to the deadline for ByteDance, TikTok’s parent company, to finalize a sale of the U.S. operations to non-Chinese investors. The deal, which would have created a new U.S.-based company with ByteDance holding under 20%, had reportedly received approval from all major parties—including ByteDance, current and new investors, and the U.S. government.
However, ByteDance confirmed on Saturday that key disagreements remain, noting that no final agreement has been reached and any deal would need to undergo Chinese regulatory review.
The hold-up follows Trump’s announcement earlier this week of a 34% tariff increase on Chinese imports, raising the total tariff to 54%. China retaliated and, according to sources, signaled that it would not greenlight the TikTok deal under these trade conditions.
Trump acknowledged China’s disapproval but remained optimistic. “We do not want TikTok to go dark,” he posted on social media, while emphasizing continued discussions with potential investors and Chinese authorities.
While the U.S. Congress had previously passed a law mandating TikTok’s U.S. exit by January 19 unless ByteDance completed a sale, Trump—who returned to office the next day—chose not to enforce the law immediately. A new mid-June deadline has now been set.
Key U.S. investors reportedly involved in the talks include Susquehanna International Group and General Atlantic. Walmart, however, has denied reports suggesting its involvement.
The proposed structure would significantly reduce Chinese ownership in TikTok’s U.S. business, aiming to meet national security requirements and avoid a full ban of the app used by 170 million Americans.