The tariffs from President Trump frustrated his strategy to protect TikTok from the ban.
TikTok is currently involved in the trade war between Trump and China.
At the beginning of this week, when it seemed that TikTok's future in the U.S. would be defined on April 5, many companies and personalities, from Amazon to the founder of OnlyFans, were considering acquiring the app. However, those interested did not have much hope. Sources close to the matter have indicated that, although there were multiple offers, the White House was only seriously evaluating a proposal led by Oracle, which included several of ByteDance's major investors willing to reinvest in a new U.S. entity. This proposal involved licensing the app's algorithm from China and adjusting some of the shareholders' funds to make TikTok appear more independent of ByteDance. An announcement was expected before President Donald Trump unleashed a new round of tariffs.
Trump's announcement of tariffs on Wednesday diminished the chances that the TikTok proposal would gain approval from the Chinese government. On Friday, less than an hour after the president mentioned extending the deadline for banning TikTok by 75 days, ByteDance issued a statement indicating that any agreement would be subject to Chinese legislation. Although on Thursday he suggested that there might be a path toward the approval of a deal in exchange for relief on tariffs, the president showed less confidence the next day, hoping to continue negotiations with China, which apparently was dissatisfied with the reciprocal tariffs imposed.
Those who have closely followed the complicated discussions about banning TikTok are exhausted. After five years, Trump has undermined a plan that could have guaranteed TikTok's continued operation. His friend Larry Ellison had plans to boost Oracle by reviving the security proposal known as Project Texas, presented to the previous administration, although this time with fewer security guarantees. Investors and employees of TikTok were finally hoping for certainty regarding the app's future. ByteDance, in effect, would maintain control over its algorithm while Trump could have claimed to have saved the platform.
Currently, TikTok will continue operating in the U.S. thanks to Trump’s Justice Department not enforcing the ban approved by Congress and backed by the Supreme Court. Despite violating laws, hosting providers in the U.S., including Apple, Google, and Oracle, seem content with the situation. However, if Trump does not ease the tariffs against China, TikTok could finally face its ban.