Trump's Tariffs Put TikTok Deal at Risk: US Ban Still Possible
Earlier this year, a potential deal to save TikTok from a US ban seemed within reach. Numerous parties, including big names like Amazon, expressed interest in acquiring the popular video-sharing app. However, President Donald Trump's trade war with China has thrown a wrench into the works, potentially scuttling any chance of a resolution.
Initially, the White House appeared to favor a consortium led by Oracle, with significant involvement from ByteDance's existing investors. This proposal involved licensing TikTok's algorithm from China and restructuring shareholder stakes to project an image of US independence. The plan was on track for announcement until Trump's tariff escalation, which effectively halted progress, as it requires Chinese government approval.
ByteDance acknowledged that any agreement would require Chinese approval, a sentiment echoed by President Trump, who expressed uncertainty about China's willingness to cooperate amid ongoing trade tensions.
This saga, marked by twists and turns, has left many feeling exasperated. Trump's actions have jeopardized the plan to keep TikTok operational in the US. The proposed deal would have benefited various stakeholders, including Oracle, TikTok's investors and employees, and ByteDance itself. Even Trump would have been able to claim credit for saving TikTok.
Despite the uncertainty, TikTok continues to operate in the US, partly due to the Department of Justice's lack of enforcement of the ban. US hosting providers like Apple, Google, and Oracle seemingly remain comfortable with the situation, despite potential legal implications. However, the future of TikTok in the US hinges on Trump's stance on tariffs against China.
Source: The Verge