On Monday (January 20th), newly sworn-in U.S. President Donald Trump temporarily extended the deadline for TikTok, the Chinese-owned social media app, giving it a few more months to find an American buyer.
On Sunday, January 19th, TikTok was down in the U.S. for about 12 hours. The company said it happened because of confusion with the Biden administration and the Department of Justice.
When TikTok came back online, the company thanked Trump for helping restore the platform. On Monday, January 20th, Trump told the Department of Justice to delay the ban for 75 days.
Amid signing many executive orders, Trump suggested punishing China if a deal for TikTok wasn’t made.
Trump suggested punishing China if a TikTok deal couldn’t be made. On Monday evening at the White House, he said, “If we made a good deal with TikTok, I think China would approve it because we could add tariffs on them.”
Trump warned that if no deal was made, the U.S. could respond by adding high tariffs on China, saying, “We could go as high as 25%, 30%, 50%, or even 100%.”
Trump often threatened high tariffs on China during his campaign and after taking office. However, his first tariffs didn’t target China—they were aimed at Canada and Mexico instead.
Trump said he planned to put a 25% tax on goods from Canada and Mexico by February 1. He also mentioned he might consider adding a tax on all products brought into the U.S. from other countries.
Trump’s executive order gives the government more time to figure out a way for TikTok to continue running while addressing national security issues. It also allows TikTok’s Chinese owner, ByteDance, to make a deal with a U.S. company to keep the app available in the country.
Former President Joe Biden signed a law last April that required TikTok’s parent company, ByteDance, to sell the app by January 19 if they wanted it to keep running in the U.S. The deadline could be extended by 90 days, but only if a sale was already underway.
When Trump took office for the second time, his actions showed a change in how he views TikTok. During his first term, he tried to ban TikTok and the Chinese messaging app WeChat, citing national security risks. However, U.S. courts stopped the ban from happening.
On Sunday, just before the inauguration, Trump said that creating a joint venture could be the solution to the TikTok issue.
Trump posted on his Truth Social platform that he wanted the United States to own 50% of ownership position in this joint venture. He said this would ensure TikTok is in “good hands.”
A joint venture might not solve Washington’s national security worries, like claims that Beijing can access data from U.S. users.
China might also need to approve a TikTok joint venture. This is because, in 2020, China made a rule that key technologies, like algorithms, can’t be shared with foreign companies without permission. So, any deal involving these technologies would need Beijing’s approval.
Trump now seems more open to TikTok than before. At the inauguration, TikTok’s CEO, Shou Chew, sat next to Tulsi Gabbard, who Trump chose to be the director of national intelligence.
On Monday, Trump said, “I think I’ve warm spot to TikTok more than I did at first.”
By Girish Linganna, Defence Analyst
(The author is an award-winning Science Writer and a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach Girish Linganna: girishlinganna@gmail.com)