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Trump Administration Anticipates TikTok Deal Announcement Amid National Security Concerns
President Trump indicated he anticipates unveiling the terms of an agreement with ByteDance, the China-based parent company of TikTok, regarding the sale of the widely-used video-sharing application. This announcement is expected before the approaching deadline this Saturday. The potential TikTok sale follows rising national security concerns surrounding the app.
Deadline Looms for TikTok Divestment
The President faces an April 5th deadline to secure a suitable acquirer for TikTok. This timeline was established after an executive order postponed the enforcement of a federal law that would prohibit the application unless ByteDance divested its ownership. Congress initiated the ban due to apprehensions that TikTok poses a national security risk, potentially serving as a tool for espionage and Chinese government propaganda.
“Tremendous Interest” in TikTok Acquisition
“We have numerous prospective purchasers. There is significant interest in TikTok,” President Trump informed reporters late Sunday, as reported by Reuters. “The ultimate decision will be mine, as empowered by Congress. They have delegated the authority to me to make this determination.”
“I would prefer to see TikTok continue operating,” President Trump added, signaling a preference for a solution that allows the platform to remain active.
Negotiations Underway; Grace Period Expected
President Trump has suggested the possibility of extending the sales deadline if additional time is required to finalize the agreement. Vice President JD Vance is reportedly leading the negotiation efforts. Discussions involve several of TikTok’s current US-based investors, including General Atlantic and Sesquehanna, who are considering increasing their ownership stake, according to reports. Oracle, led by Larry Ellison, is projected to play a critical role in safeguarding the data of TikTok’s vast user base in America, exceeding 170 million individuals.
Potential Grace Period and ByteDance’s Minority Stake
The current administration is anticipated to declare a grace period, potentially 30 days or longer, to allow officials to finalize the intricate details of the agreement. Concurrently, ByteDance is expected to retain a minority ownership interest in TikTok following the divestment.
Senator Cotton’s Divestment Concerns
Senator Tom Cotton (R-Ark.), leading the Senate Intel Committee, has advocated for complete separation from Chinese ownership. He has voiced reservations regarding ByteDance maintaining any involvement post-sale.
Concerns Temporarily Set Aside Amid Deal Progress
However, reports indicate Senator Cotton has communicated his intention to temporarily suspend his concerns as the White House proceeds to secure a deal aimed at mitigating Congress’s national security concerns related to TikTok.
Tariff Reduction Contingent on TikTok Deal?
Last week, President Trump alluded to the possibility of offering China a concession on tariffs if they approve a TikTok agreement. The President has already implemented a 20% tariff on all imported goods from China and has warned of further penalties if trade discussions are unproductive.
Tariffs as Leverage in TikTok Negotiations
“Perhaps I will grant them a slight decrease in tariffs or something similar to finalize it,” President Trump stated, suggesting tariffs as a negotiating tool to facilitate the TikTok sale.