President Donald Trump issued another extension to allow TikTok’s China-based parent company, ByteDance, an additional 75 days to find a U.S. buyer for the popular social media app.
The executive order, signed on April 4, pauses all enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act and instructs U.S. Attorney General Pam Bondi to issue a letter stating there have been no violations of the statute and there is no liability on the part of any providers during the extension.
The Equinox previously reported on Trump’s initial 75-day extension that was issued via executive order on his first day in office.
The extension comes after a deal to divest TikTok’s operations from China fell through as a result of Trump’s imposed tariffs on China, according to a CNN Business article.
The deal, which was finalized on Wednesday, April 2, was set to begin a 120-day period to finish financing with the approval of Trump, but was derailed following the imposition of a 34 percent tariff on China.
The agreement would have offloaded the bulk of TikTok’s stakes into the hands of venture capitalists, private equity funds and tech giants while also allowing ByteDance to retain a 20 percent stake in the company, according to CNN’s reporting.
Trump defended the tariffs on his social media platform, Truth Social.
“We hope to continue working in Good Faith with China, which I understand are not very happy about our Reciprocal Tariffs,” Trump stated in the April 4 post.
Trump added he did not wish to see the social media platform “go dark” and that the extension would allow a deal to be closed, citing the tariffs as a useful bargaining chip.
However, thus far, the tariffs on Chinese goods have only ignited a trade war with the superpower.
CBS News reported U.S. import duties on Chinese products now stand at 145 percent; meanwhile, China has responded with 125 percent tariffs on U.S. products.
ByteDance issued a statement via a spokesperson on the prospect of the deal with U.S. investors.
“An agreement has not been executed. There are key matters to be resolved. Any agreement will be subject to approval under Chinese law,” the statement said.
There were over 150 million American TikTok users as of March 21, 2023, according to a blog post by TikTok.
ByteDance will now have until June 18 to secure a divestment deal without a third extension by Trump.
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