- A finalized deal to sell TikTok’s U.S. operations to American investors, including Oracle, collapsed after China halted approval, linking it to negotiations over President Trump’s escalating trade tariffs.
- Trump imposed a 34 percent tariff on Chinese imports, on top of existing 20 percent tariffs, prompting China to retaliate with matching tariffs and restrictions on rare earth exports, derailing the TikTok agreement as Beijing demanded broader trade talks.
- The deal, initially set to keep TikTok operational in the U.S. under American control, was seen as a political priority for Trump, who extended the divestiture deadline by 75 days to June 19, 2025, to avoid a ban, citing national security and economic leverage.
- Despite the push to “save TikTok,” critics, including Republican lawmakers, expressed concerns over Chinese Communist Party access to U.S. user data, with the deal’s failure highlighting tensions between national security and trade negotiations. Read More
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