Trump reveals why China blocked TikTok US sale deal
What's the story
President Donald Trump has revealed that China's objections to new tariffs have stalled a deal for the popular social media app, TikTok.
The app, owned by China's ByteDance Ltd., was close to being sold off and kept operational in the US, but these objections have now stalled those plans.
"We had a deal pretty much for TikTok—not a deal but pretty close—and then China changed the deal because of tariffs," said Trump.
Sale efforts
Trump administration's efforts to sell TikTok
Trump's administration officials, including Vice President JD Vance and National Security Advisor Mike Waltz, have been working on a deal to sell TikTok's US business to an American buyer.
The move is in line with a bipartisan law enacted in 2024, requiring the popular app to be sold off. However, any agreement also necessitates China's approval.
Before Trump's announcement of widespread tariffs last week, a deal was reportedly close with US investors led by Oracle, Blackstone, and Andreessen Horowitz.
Tariff escalation
Trump's tariff order and China's retaliation
Trump has ordered an additional 34% tariff on China, on top of the 20% already imposed earlier this year.
China, in turn, announced its own 34% tariff on all US imports from April 10, and also revealed plans to restrict exports of certain rare earth items.
Despite the tensions, Trump had previously expressed willingness to negotiate a deal with China for lower tariffs in exchange for a TikTok sale.
Divestment deadline
TikTok's US unit divestment deadline extended
Under the 2024 law, ByteDance had to divest TikTok's US unit by January 19. However, the company has been reluctant to part with the lucrative business worth between $20 billion and $150 billion.
Trump has extended this divest-or-ban requirement and recently signed another 75-day extension.
In a post on his social media platform, Trump reiterated his desire for China to help negotiate a sale and offered tariff relief in exchange for Beijing's approval.