Trump's TikTok U-Turn: Ban Delayed as New Deal Opportunities Arise

President Trump has issued an executive order granting TikTok a 75-day extension to comply with a prior law mandating either a sale or a ban of the platform. During this grace period, Trump announced that the U.S. government would suspend enforcement of this law, first passed under former President Biden.

In a press briefing, Trump stated that numerous wealthy individuals have approached him regarding TikTok, hinting at potential financial interests in the platform. He suggested a possible 50-50 partnership between the U.S. and TikTok’s Chinese parent company, ByteDance, although he did not provide specific details on how such an arrangement would function.

Trump warned of potential new trade tariffs on China should a deal fail, framing any rejection of a sale as a “hostile act”. Chinese officials have historically opposed the sale of TikTok, but recently softened their rhetoric, asserting that business operations should be left to the companies involved.

The TikTok app had been temporarily suspended in the U.S. amid fears of national security threats, only to resume service after Trump’s announcement of the delay. While TikTok faces criticism related to privacy and potential spying, opponents of the ban argue in favor of free speech.

TikTok’s parent company, ByteDance, has disregarded previous mandates to divest its U.S. interests, and the law mandating such a sale had recently been upheld by the Supreme Court. Trump’s new order contradicts sentiments from several congressional Republicans, including Senator Tom Cotton, who warned about severe repercussions for companies associated with TikTok.

Notably, TikTok’s CEO attended Trump’s inauguration alongside other tech luminaries, indicating a significant moment in the ongoing saga of the platform’s future in the U.S. There is an increasing buzz around potential buyers for TikTok, with figures like former Treasury Secretary Steven Mnuchin and entrepreneur Kevin O’Leary showing interest.