New York, April 5 (V7N) – A deal to spin off TikTok’s U.S. operations has been put on hold after China indicated it would not approve the deal in response to President Donald Trump’s recent tariffs on Chinese goods. According to two sources familiar with the matter, the deal, which had largely been finalized by Wednesday, was set to make TikTok’s U.S. operations a separate company based in the U.S. with a majority of American investors. ByteDance, TikTok’s parent company, would have held a minority stake of less than 20%.
 
The deal had received approval from ByteDance, existing investors, new investors, and the U.S. government. However, the Chinese government’s objections to the deal emerged after President Trump announced new tariffs on Chinese goods, which China retaliated against on Friday.
 
On Friday, President Trump extended the deadline for ByteDance to sell TikTok’s U.S. assets by 75 days. This decision delays a deadline originally set in January under a 2024 law, which would have required ByteDance to sell its U.S. assets to a non-Chinese buyer or face a potential ban.
 
In a statement on social media, Trump said, “The deal requires more work to ensure all necessary approvals are signed. We hope to continue working in good faith with China, who I understand is not very happy about our reciprocal tariffs.” The U.S. has imposed a 54% tariff on Chinese goods following Trump’s decision to increase tariffs by 34% earlier this week, prompting retaliatory measures from China.
 
Both ByteDance and the White House did not respond immediately to requests for comment. The Chinese Embassy in Washington D.C. also did not comment on the situation.
 
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