TikTok's U.S. Asset Spin-Off Stalled Amid U.S.-China Tariff Tensions

Plans to spin off TikTok's U.S. assets have stalled as China objects to the deal after President Trump's tariff announcement. The deal, intended to create a new U.S.-based company for TikTok's American operations, is on hold. Trump extended the deadline, giving ByteDance 75 more days to comply.

Plans to spin off TikTok's U.S. assets have faced a setback after China indicated disapproval following President Trump's new tariff hikes. Sources close to the matter stated that the deal, almost finalized, would have created a U.S.-based company controlled mainly by American investors, with ByteDance holding a minority stake.

The delay arises amidst increasing U.S.-China tensions, with both nations imposing fresh tariffs. President Trump extended the deadline for TikTok's U.S. asset sale by 75 days, stressing the need for continued negotiations with China, who reportedly disapproves of recent U.S. tariff measures.

While ByteDance and the White House have been non-responsive to comment requests, the stakes remain high as the popular video app TikTok, used by 170 million Americans, hangs in the balance, with a threatened U.S. ban looming if the sale does not proceed.

(With inputs from agencies.)