A potential deal to sell TikTok has been scuttled due to President Donald Trump’s tariffs on China. Trump extended the deadline for the sale by 75 days in a bid to find a non-Chinese buyer.

According to NBC News, a deal had been agreed upon as of Wednesday, but the recently imposed tariffs on China presented a late-breaking hurdle. The White House was informed by ByteDance representatives after the tariffs were implemented that China would not accept a deal until there could be negotiations around trade and tariffs.

Key Details of the Deal

The deal would have spun off TikTok’s US operations into a new, American-based company owned and operated by a majority of American investors, with ByteDance maintaining a minority stake. The executive order would have called for a 120-day closing period to finalize paperwork and financing.

Implications of the Failed Deal

ByteDance, the Chinese company that owns TikTok, must find a non-Chinese buyer for the app or else it will be banned under a law passed in 2024. The failed deal has significant implications for the future of TikTok in the US.

Trump’s Tariffs and Global Trade

Trump’s tariffs on China have been a contentious issue, with critics arguing that they will harm American consumers and businesses. The tariffs have also sparked concerns about a potential trade war between the US and China.