China Halts TikTok Deal Amid Trump's Tariffs, Report Claims

A proposed agreement to separate TikTok’s American activities has been delayed as the Chinese administration signaled they wouldn’t sanction the transaction subsequent to President Donald Trump’s tariff declarations, according to a report from Reuters on Friday.

On Friday, Trump issued an executive order to push back the April 5 deadline For an agreement to maintain TikTok BDNCE ) functioning in the U.S. for another 75 days.

"I hope we can keep collaborating constructively with China, even though they seem quite displeased with our reciprocal tariffs (which are essential for fair and balanced trade between China and the USA!)" wrote Trump in a post on his social media platform Truth Social.

The agreement, having received approval from both current shareholders and new investors as well as ByteDance, ( BDNCE ) and the U.S. government were considering spinning off TikTok’s U.S. operations into a new American-based corporation predominantly controlled and managed by U.S. investors, according to the report. ByteDance was said to be involved in these discussions as well. BDNCE It would drop below 20%.

Nevertheless, any agreement concerning TikTok would necessitate China’s consent, even though it currently imposes 54% duties on products brought into the U.S., along with its own announcements. retaliatory tariffs .

Multiple companies have placed bids for the short-form video application owned by Chinese entities, with Oracle being one of them. NYSE: ORCL ), Andreessen Horowitz and Blackstone ( BX ), Amazon.com ( AMZN ), Microsoft ( MSFT ), AppLovin ( APP ), and others .

The negotiations for the new agreement are reminiscent of a deal that nearly materialized in 2020, which was spearheaded by Oracle. ORCL Oracle is still arguably well-positioned to head a coalition capable of finalizing a deal for TikTok.

Regardless of all the bids, the White House was solely contemplating an Oracle ( ORCL )-led consortium, The Verge reported.

"ByteDance has been in discussion with the U.S. Government regarding a potential solution for TikTok U.S. An agreement has not been executed. There are key matters to be resolved. Any agreement will be subject to approval under Chinese law," said a spokesperson for ByteDance ( BDNCE ).