TikTok's U.S. Spin-Off Deal Stalls Amidst China Tariff Tensions

The proposed spin-off of TikTok's U.S. assets has been delayed after China signaled disapproval, following new tariffs announced by President Trump. The deal, which would reduce Chinese ownership in the app, requires Chinese government approval. Deadline extensions are in place, as negotiations continue amid heightened U.S.-China tensions.

The planned divestiture of TikTok's U.S. operations by its parent company, ByteDance, has hit a roadblock following China's objection, sources report. The delay comes on the heels of President Donald Trump's recent announcement of increased tariffs on Chinese goods, leading to escalated tensions between the two nations.

The agreement, largely completed but awaiting final approval, intends to establish a U.S.-based company controlling TikTok's American assets. U.S. investors would predominantly own the new entity, with ByteDance maintaining a minority stake of less than 20%. The process has garnered support from key stakeholders, including the U.S. government.

As negotiations proceed, the impasse highlights the complexities in securing Chinese government consent, a critical hurdle given the broader issues of mutual tariffs and national security concerns. Trump remains hopeful for a resolution, looking to avoid the app's potential ban affecting 170 million American users.

(With inputs from agencies.)