Did the TikTok Deal Just Go Down in Flames? — Trump’s Tariffs Are to Blame, But President Says Deal is ‘Still on the Table’

Photo Credit: Alejandro Luengo

The Trump administration’s efforts for a TikTok deal may have gone down in flames thanks to the president’s tariffs. But Trump insists a deal is still on the table.

President Trump still says a potential deal to spin off TikTok’s US assets is “still on the table,” just days after it was put on hold and the deadline extended yet again. But China’s displeasure with the recently imposed trade tariffs may have killed any chance for a deal. Trump remains undeterred on the subject.

“We have a deal with some very good people, some very rich companies that would do a great job with it, but we’re going to have to wait and see what’s going to happen with China,” said Trump. “It’s on the table, very much.”

Last week, the president extended the deadline for China-based ByteDance to divest its US TikTok assets to an American company or face a ban. The latest deadline is now June 19, as Trump has twice granted an extension to avoid enforcement of the ban, originally set to kick in back in January.

But lawmakers have been critical of the continued extensions. Democratic Senators Mark Warner and Ed Markey said Trump had no legal authority to extend the deadline yet again. Further, Warner asserts the reported deal on the table would likely not meet legal requirements in the first place.

Meanwhile, Senate Intelligence Committee chair Tom Cotton said that while many American investors want to buy TikTok, they would need to cut all ties with China. However, the deal reportedly most up for consideration would allow ByteDance to retain a minority stake in the spun-off US-based company.

“These potential buyers may ask Congress to somehow indemnify them for violating the law or immunize them for TikTok’s past crimes against and injuries to the American people,” said Cotton. “To any American who wants to invest in some half-assed TikTok deal, Congress will never protect you from going into business with Communist China.”

But it’s the Chinese government who must approve any deal to secure TikTok. Sources close to the matter say work on the potential deal continues ahead of the latest deadline — but the White House and Beijing will need to resolve the tariff dispute first.

The law passed last year requires TikTok to stop operating (initially by January 19) unless ByteDance had divested the app’s US assets. Trump began his second term as president the following day and extended the deadline rather than enforcing the ban.

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