TikTok’s Fate in the US: Trump’s Tariffs May Have Just Killed the Deal
The Bidding War
Earlier this week, when it seemed as though TikTok’s fate in the US would actually be decided by April 5th, everyone — from Amazon to the founder of OnlyFans — was coming out of the woodwork to buy it.
The White House’s Preferred Bid
People familiar with the matter tell me that, despite all of the bids for the app, the White House was only seriously considering an Oracle-led consortium, which included many of ByteDance’s biggest investors who were set to roll their stakes into a new, US entity.
The Proposal
The proposal, which would have licensed the app’s algorithm from China and shuffled some shareholder money around to make TikTok look more independent from ByteDance, was set to be announced before President Trump went nuclear on tariffs.
The Tariffs
On Wednesday, less than an hour after Trump said he was pushing back the clock on banning TikTok by another 75 days to finish working out a deal, ByteDance issued its first statement on the situation, saying that "any agreement will be subject to approval under Chinese law."
The President’s Uncertainty
After suggesting on Thursday that China would approve a TikTok deal in exchange for tariff relief, the president seemed less confident on Friday: "We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!)."
The Consequences
Anyone who has been closely following this tortured saga that is the TikTok ban is exhausted. Now, five years after he first tried to ban it, Trump has seemingly torpedoed the plan that was finally going to keep TikTok running.
What’s Next?
TikTok gets to continue operating in the US for a while longer, thanks to Trump’s Department of Justice not enforcing a ban that was passed by Congress and upheld by the Supreme Court. TikTok’s US hosting providers, including Apple, Google, and Oracle, are seemingly still okay with this situation despite the fact that they are very much breaking the law. And unless Trump ultimately eases on tariffs against China, TikTok may end up banned after all.
Conclusion
The fate of TikTok in the US remains uncertain, and it seems that President Trump’s tariffs may have just killed the deal that was proposed to keep the app running. The future of the app and its users hangs in the balance, and it remains to be seen what will happen next.
Frequently Asked Questions
Q: What is the current status of the TikTok deal?
A: The deal is currently on hold due to President Trump’s tariffs against China.
Q: Will TikTok continue to operate in the US?
A: Yes, for now, TikTok will continue to operate in the US, but its future is uncertain.
Q: Will the US hosting providers continue to host TikTok?
A: Yes, for now, Apple, Google, and Oracle will continue to host TikTok, but their willingness to do so may change in the future.
Q: What does this mean for TikTok’s users?
A: It means that the app’s fate is uncertain, and users may face disruptions or even a complete ban in the future.
