TikTok Stays Online for Now: Trump Floats US Ownership Deal

While signing the order, Trump proposed that the United States government could hold a 50% ownership stake in TikTok’s U.S. business in exchange for allowing the app to operate domestically. He also warned of potential tariffs on China if Beijing did not approve a deal involving TikTok. Per Reuters, Trump’s proposal reflects his ongoing focus on U.S.-China relations, which have been fraught with tension in recent years.

TikTok’s Tumultuous Weekend

The drama began on Saturday when TikTok, which has an estimated 170 million users in the U.S., was briefly taken offline. This development coincided with the looming deadline for its Chinese owner, ByteDance, to divest the app on national security grounds. Reuters reported that on Sunday, Trump declared his intention to “save TikTok,” prompting the app’s swift restoration for U.S. users. In a statement, TikTok expressed gratitude to the incoming administration for providing assurances that its operations could continue without the threat of heavy penalties.

Despite being operational, TikTok remains unavailable for download on the Apple and Google app stores, and the legal standing of Trump’s executive order remains in question. The law requiring ByteDance to divest TikTok was passed with bipartisan support in Congress, signed into law by President Joe Biden, and upheld by the Supreme Court. As Reuters noted, the law does not explicitly grant the president authority to extend the divestiture deadline unless binding agreements for a sale are in place—an element that remains unclear.

Political and Economic Implications

Representative Frank Pallone criticized Trump’s order, stating it undermines national security legislation supported by a bipartisan majority in Congress. The issue comes during a critical juncture in U.S.-China relations. Trump has hinted at imposing tariffs on China while expressing a desire for more direct communication with Beijing’s leadership. Reuters reported that China has signaled a willingness to consider a deal that would allow TikTok to continue operating in the U.S., with the country’s foreign ministry emphasizing that companies should independently decide their business strategies.

Related: Supreme Court Justices Grill TikTok’s Lawyer in National Security Case

Trump’s suggestion of a government stake in TikTok raises eyebrows, as such a move would be unprecedented for a U.S. administration. While Trump argued that the U.S. would create significant value by resolving the app’s operational challenges, it remains unclear how such an arrangement would address national security concerns. Reuters highlighted that Trump’s comments did not clarify whether ByteDance or other Chinese stakeholders would retain any ownership in TikTok under a new deal.

Previous Attempts at a Resolution

This is not Trump’s first attempt to address concerns about TikTok. During his first term, he unsuccessfully sought to ban the app, citing fears that ByteDance could share U.S. user data with the Chinese government. In 2020, Trump endorsed a potential deal with Walmart and Oracle to take ownership stakes in TikTok, which included a $5 billion contribution to a U.S. education fund. However, that agreement ultimately collapsed.

As part of his Monday order, Trump directed the Justice Department to notify companies like Apple, Google, and Oracle that there is no liability for their past dealings with TikTok. Whether this reassurance will prompt app stores to restore TikTok remains to be seen. Meanwhile, ByteDance has not commented on the developments.

The Path Ahead

The TikTok controversy underscores broader concerns about the role of Chinese-owned technology in the U.S. market. While Trump’s actions aim to protect national security and secure economic benefits for the U.S., the lack of clarity around the legal and logistical aspects of the proposed solutions leaves significant uncertainty for the app’s future.

Source: Reuters