A potential deal for TikTok appears to be caught in the crossfire of the US-China trade conflict

The intensifying trade conflict between the United States and China has placed TikTok’s future in jeopardy. ByteDance, the Chinese parent company of the popular app, has been granted a 75-day extension to divest its U.S. operations, as announced by the Trump administration. This move comes after both countries imposed retaliatory tariffs, adding further complications to the already tense negotiations.

Although a near-final agreement was reportedly on the table, China’s refusal to accept the deal, following the imposition of additional U.S. tariffs, has stalled any progress. With over 170 million American users, TikTok’s future in the U.S. remains uncertain, caught in the larger crossfire of the ongoing trade dispute.

ByteDance was set to retain a minority stake in the new company, staying under the 20% ownership cap mandated by Congress.

All that was left was for the Chinese government to approve the deal, which all parties involved had anticipated would occur.

However, on Wednesday afternoon, President Trump announced new tariffs.

By Thursday morning, ByteDance representatives informed the White House that the Chinese government would not approve the deal until discussions could be held regarding Trump’s tariffs.

As a result, the deal remains in limbo, held hostage by the escalating U.S.-China trade war.

On Friday, Trump announced he was extending the deadline for TikTok to either be banned or sold by ByteDance.

The original April 5 deadline has been pushed back by 75 days, Trump revealed on his social media platform. This marks the second time the deadline has been extended since he took office.