TikTok has been given a temporary reprieve as former U.S. President Donald Trump signed an executive order delaying the enforcement of a ban on the popular video-sharing app. The order, signed Monday, extends the deadline for ByteDance, TikTok’s Chinese parent company, to sell its U.S. operations by 75 days.
However, this extension comes with a controversial twist: Trump proposed that the U.S. government take a 50% ownership stake in TikTok if the deal is approved.
TikTok’s Rocky Road in the U.S.
The drama began over the weekend when TikTok, with over 170 million U.S. users, briefly went offline due to legal uncertainties. ByteDance was facing a law requiring the divestiture of TikTok’s U.S. operations on national security grounds or a complete ban of the app.
Trump’s executive order has temporarily halted the enforcement of this law, allowing more time for negotiations. However, the legality of the order is being questioned.
Critics argue that the law, passed by Congress and upheld by the Supreme Court, doesn’t grant Trump the authority to extend the deadline unless ByteDance has binding agreements to sell TikTok — which remain uncertain.
China’s Response and Tensions
China’s foreign ministry signaled openness to a potential deal, stating that companies should independently decide their operations. However, this issue comes amidst heightened U.S.-China tensions.
Trump has previously proposed tariffs on Chinese goods, making this debate not just about TikTok but also about broader trade relations between the two nations.
Trump’s Controversial Proposal
In a surprising move, Trump suggested the U.S. government could take a 50% equity stake in TikTok, arguing that if the app’s value is saved, the U.S. should share in its financial benefits. He also hinted that this stake could allow the U.S. to monitor TikTok for security concerns.
Trump’s comments have raised eyebrows, as it would be unprecedented for the U.S. government to demand ownership in exchange for approving a company’s operations. This proposal also doesn’t clarify whether ByteDance or other Chinese entities could retain a stake in TikTok, leaving national security concerns unresolved.
Uncertain Future for TikTok
Despite Trump’s order, TikTok remains unavailable for download on major app stores, including Google Play and Apple’s App Store. It’s unclear whether the executive order will prompt these companies to restore the app in the U.S.
In the meantime, ByteDance and its partners, including Walmart and Oracle, continue to explore potential deals to meet U.S. demands. China’s openness to a resolution adds a layer of hope, but the path forward is far from clear.
As negotiations continue, TikTok’s future in the U.S. hangs in the balance. Whether Trump’s unconventional proposal will resolve the standoff or lead to further complications remains to be seen.
