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Home  /  Business  /  Trump Gives TikTok a Third Deadline Extension As U.S. Sale Talks Continue

Trump Gives TikTok a Third Deadline Extension As U.S. Sale Talks Continue

by Shriya Kataria
June 20, 2025
in Business, Technology, The US
Reading Time: 5 mins read
Trump Gives TikTok a Third Deadline Extension As U.S. Sale Talks Continue

Trump gives TikTok another extension

President Donald Trump has granted TikTok another 90-day lifeline to find a U.S.-approved buyer or face a nationwide ban. The new deadline, now set for September 17, 2025, marks the third extension since Trump returned to office in January, reigniting a years-long geopolitical saga over the popular app’s future in the United States.

“I’ve just signed the Executive Order extending the Deadline for the TikTok closing,” Trump posted on his Truth Social platform Thursday, effectively delaying enforcement of a federal law that would otherwise have forced the app off American devices.

The move comes amid continued concerns over national security, Chinese influence, and a heated global rivalry in tech dominance—but also reflects a notable shift in Trump’s tone toward the app, which he now credits for helping him win over young voters in the 2024 election.

Why does the U.S. want TikTok sold?

At the core of the controversy is the belief that TikTok’s parent company, ByteDance, is beholden to the Chinese government—a concern shared by lawmakers and intelligence officials in both political parties. Critics argue that TikTok could be compelled to share sensitive user data with Beijing, even if indirectly.

These concerns led to a bipartisan law, passed in late 2024, requiring ByteDance to either divest its U.S. operations or face a ban on national security grounds. That law was originally set to take effect January 19, 2025—one day before Trump’s second inauguration.

Despite the urgency, ByteDance has yet to finalize a sale, prompting the Trump administration to issue multiple extensions while negotiations continue.

“TikTok has become a symbol of the U.S.-China tech rivalry—a flashpoint in the new Cold War for digital control,” said Shweta Singh, Assistant Professor of Information Systems at the University of Warwick.

So why is Trump delaying again?

Trump, who once championed a hardline stance on TikTok, has softened his rhetoric significantly since returning to office.

In an NBC News interview this May, he said, “I have a little warm spot in my heart for TikTok,” and noted that he’s open to extending the deadline if it ensures continued access for American users.

His shift is both political and strategic. Analysts say Trump now sees TikTok as a valuable tool for reaching young voters, and any move to shut it down could risk alienating a large user base.

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“Unless they get on his bad side, TikTok is probably going to be in pretty good shape,” said independent analyst Rob Enderle.

Who’s trying to buy TikTok?

ByteDance has confirmed ongoing talks with U.S. officials but says key issues remain unresolved—including what to do with TikTok’s algorithm, the engine that powers its famously addictive content feed.

“TikTok without its algorithm is like Harry Potter without his wand — it’s simply not as powerful,” said Kelsey Chickering, principal analyst at Forrester.

A possible deal structure reportedly involves:

  • Existing U.S. investors in ByteDance rolling their stakes into a new, independent TikTok entity.
  • Additional American backers, such as Oracle and Blackstone, taking significant stakes to reduce ByteDance’s control.
  • ByteDance is retaining minority ownership, subject to Chinese regulatory approval.

Will China allow the sale?

That’s another major complication. Any sale of TikTok’s U.S. operations would be subject to approval under Chinese law, particularly when it comes to exporting recommendation algorithms, which China treats as strategic technology.

This isn’t the first time such a deal has been floated. A similar structure was discussed during Trump’s first term, when Oracle and Walmart were tapped to buy a minority stake in TikTok, only for the plan to fizzle amid legal challenges and shifting political winds.

What’s TikTok saying?

TikTok has welcomed the latest extension, calling it a sign of “President Trump’s leadership” and expressing gratitude for the opportunity to continue operating in the U.S.

“We are grateful for President Trump’s support in ensuring that TikTok remains available to over 170 million American users,” the company said in a statement.

Behind the scenes, TikTok appears to be betting on continuity, launching new features like its “Symphony” AI suite for advertisers even as its future hangs in the balance.

What happens next?

With the clock now reset to September 17, the pressure is on ByteDance to finalize a divestment plan that satisfies both Washington and Beijing. If not, the ban may finally be enforced—though given the repeated delays, nothing is certain.

Here’s what to watch:

  • Whether ByteDance proposes a concrete buyer or a restructuring plan before fall.
  • How China reacts to any proposed deal involving the export of algorithms.
  • Whether political pressure mounts again from U.S. lawmakers pushing for a faster timeline.

TL;DR

  • President Trump has extended the deadline for TikTok to sell its U.S. operations to September 17, 2025, the third delay so far.
  • ByteDance, TikTok’s Chinese parent company, is in ongoing talks to divest but faces challenges over its algorithm and regulatory approval from China.
  • Trump, once a vocal critic, now sees TikTok as politically useful and has expressed fondness for the platform.
  • TikTok continues to operate normally in the U.S., rolling out new AI tools and reaching over 170 million American users.
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