TikTok Sale Blocked Amid Rising Trade Tensions

The proposed sale of TikTok’s U.S. operations have been paused after the Chinese government signaled it would not approve the deal. The decision follows Donald J. Trump’s announcement of a 34% hike in tariffs on Chinese goods, raising the total to 54%. China responded with countermeasures, escalating trade tensions and complicating negotiations.

The deal would have transferred majority control of TikTok’s U.S. operations to American investors, including Susquehanna International Group and General Atlantic, while ByteDance would retain less than a 20% stake. A new U.S.-based company was to be created as part of the arrangement.

Under the 2024 law, ByteDance must divest TikTok’s U.S. assets or face a ban due to national security concerns. Trump has extended the deadline to mid-June. The law was passed by Congress and signed by The White House.

ByteDance confirmed ongoing talks with the U.S. government but said both sides still disagree on key issues. The Chinese Embassy in the U.S. restated its opposition to forced divestment, citing market economy principles.

The Associated Press first reported China’s refusal to approve the deal. With growing trade friction and no formal agreement, TikTok’s future in the U.S. remains uncertain.