//TikTok in Trouble: How the US-China Trade War Delayed a Major Deal//
The popular video-sharing app TikTok is now caught in a major conflict between the United States and China. For months, a special team of investors and government officials from the U.S. worked on a deal to take control of TikTok's American operations. This deal was meant to protect American users and data, making sure the app could continue to run legally in the U.S. without being banned. The group of investors included some of the most powerful companies and people in the business world, such as Oracle, Blackstone, and Andreessen Horowitz. These groups partnered with ByteDance, the Chinese company that owns TikTok, and reached an agreement that gave American investors control of the U.S. part of the business. ByteDance was supposed to keep only a small part of the company — less than 20% — which is the limit allowed by U.S. Congress. Everything seemed ready. Even President Donald Trump was preparing to sign the executive order to make the deal official. After that, a 120-day period would begin to finalize all the papers and financial steps needed to complete the process.
But suddenly, everything changed. Just hours before final approval, President Trump announced strong new tariffs — taxes on Chinese products — as part of his economic strategy. These tariffs were part of his broader trade war with China, which he claims is needed to protect American jobs and industry. Unfortunately, this announcement angered the Chinese government. The next morning, ByteDance called the White House to say that the Chinese government would not approve the deal unless there were new talks about the tariffs. This surprise move put the entire TikTok deal on hold. Now, instead of being a simple business decision, the TikTok agreement has become a bargaining chip — something both sides are using in their larger argument over trade.
President Trump reacted by extending the deadline to ban or sell TikTok. The original deadline was April 5, but Trump added 75 more days to give time for more talks. This was the second time he changed the deadline since returning to the presidency. The decision shows how unpredictable the situation has become. A simple business deal has now become part of a complex and heated trade war between two of the world’s most powerful nations.
The negotiations for TikTok were led by Vice President JD Vance, a key figure in Trump’s administration. Sources close to the talks told ABC News that Vance had played a major role in bringing the investors and the company together. But now, the deal is stuck. There are no new talks happening between ByteDance and the investors, and the White House is waiting to see what happens next in the larger trade negotiations. This situation shows how political decisions can impact business in surprising ways. Even when a deal seems finished, outside events like tariffs and international disagreements can bring everything to a stop.