Trump grants Tikkok 90 days postponement when banned from sales

Trump grants Tikkok 90 days postponement when banned from sales

In a current decision, the Weiße Haus Tiktok granted another deadline extension. President Donald Trump plans to postpone the enforcement of the law for sales or prohibition regulation by another 90 days.

Details on the decision of the President

"President Trump will sign an additional executive regulation this week to keep TikkOK going," said Karoline Leavitt, press spokeswoman for the White House, in a message. "As he has said many times, President Trump does not want Tikkok to be switched off. This extension will take 90 days, while the administration will work to complete the deal so that the American people can continue to use Tikok and has the certainty that their data is safe and protected."

background of the law

influence on the users

The decision means that the app remains accessible to its 170 million American users, despite the law that was passed last year with overwhelming support support. The reason was that the Chinese ownership of Tikok is a security risk for the United States. In addition, it is reported that both the United States and China try to exert pressure in a tense trade situation, whereby Tikok is used as a negotiation.

developments related to TikTok

The law on the sale or ban from Tikkok came into force on January 19 after former President Joe Biden had approved it. Tikok initially took a short break, which led to protests on the part of the creator, but quickly came back after Trump signed a regulation that delayed the implementation of the ban by 75 days. This was one of his first official acts as President and should enable a deal to keep the app "alive".

negotiations and challenges

In April, a deal that would have broadcast the majority of control over Tikok's US operating processes to American owners could almost have been completed. However, after Trump announced additional tariffs on China, this planned sale failed, which forced him to announce another 75-day delay in order to continue to keep the app in the United States.

"There are important points to clarify. Every agreement must be approved in accordance with the Chinese law," explained Tikok's parent company bytedance after Trump's customs policy, which stopped the progress of the deal in April.

outlook on the future of TikTok

The latest delay in the enforcement of Raise's questions about the status of a possible deal that could secure the long -term future in the United States. So far, the Chinese government has hardly indicated that it would agree to a sale, apart from the request that every deal should not contain Tikoks "algorithm", which is considered the secret recipe for success.

Today's announcement takes place according to which the United States and China have agreed to loosen export controls, which is expected to help reduce tensions and to prevent further escalation of export and other restrictions between the two countries. Whether a Tikok deal is part of this frame remains unclear, but a cooperation between the two sides could make a deal more likely to transfer the app to a US buyer.

Trump about the possible negotiations

Early on Tuesday, Trump said to reporters that a Tikok deal "probably" required the Chinese government's approval and added: "I think we'll make it." With a view to President Xi, Trump noticed: "I think he will ultimately agree."

The deal, which was planned during this time of year, would have involved several American risk capital funds, private equity companies and tech giants that should invest in a company that controlled TikKs US operating processes. The Chinese owner of Tikkok, Bytedance, would have kept a 20%share in the new company - an important condition of the law.

Several other top-class bidders were also interested in acquiring the platform, including a group under the direction of the billionaire Frank McCourt and the investor Kevin O’Leary, Amazon, known by “Shark Tank”, a AI company called Perplexity and another group of investors, which is known to the YouTube and Tiktok star Jimmy Donaldson, as Mrbeast, belonged.

Trump who first tried to ban Tikok during his previous term, but he has now declared that he had changed his opinion after using the app himself. TIKTOK CEO Shou Chew was present at Trump's inauguration and sat on the stage next to cabinet members and other tech CEOs.