The future of TikTok in the U.S. remains uncertain as President Donald Trump’s tariffs on China have reportedly complicated efforts to restructure the app’s ownership and comply with a U.S. divest-or-ban law. The popular social media platform, owned by China-based ByteDance, has been under scrutiny for years over national security concerns, leading to a forced sale or shutdown unless a U.S.-approved solution is reached.
A plan backed by ByteDance, U.S. investors, and some government officials aimed to create a new U.S.-based TikTok entity. According to The New York Times, the proposal would give new investors 50% ownership, while existing investors (including U.S. firms) would hold 30%, reducing Chinese ownership to less than 20%. This structure was designed to alleviate security concerns while keeping TikTok operational in the U.S.
However, the Trump administration’s tariffs on Chinese imports have reportedly created complications. These trade restrictions, initially imposed to pressure China economically, may now be hindering negotiations by exacerbating tensions between the two nations. The tariffs have made Beijing more resistant to U.S. demands, including those related to TikTok’s forced divestment
Several U.S. investors and tech firms have expressed interest in acquiring TikTok’s U.S. operations. Former Treasury Secretary Steven Mnuchin has been assembling a investor group, while other private equity firms and tech giants could also bid if a sale moves forward. However, Chinese export controls on TikTok’s algorithm, a key asset, remain a major hurdle.
With legal challenges ongoing and geopolitical tensions high, TikTok’s fate remains in limbo. The Biden administration has continued to push for ByteDance to divest, but the path forward is murky. If no deal is reached, TikTok could face a ban, though such a move would likely trigger further legal battles.
For now, TikTok continues operating in the U.S., but its long-term survival hinges on whether Washington and Beijing can navigate the economic and political obstacles standing in the way of a resolution.
