In the TikTok banned or not-banned saga, President Donald Trump reappeared in the spotlight and confirmed on Wednesday that the deal to separate TikTok from its U.S business is still on the table. With lawmakers waving their fingers in denial, Trump has restated his support for the business. Even though the deal was put on hold for sometime, the show is not over yet, just like the Netflix series.
With the deadline approaching again, everyone has their eyes on the resolution of US-China trade ties, which could determine the future of the deal.
Earlier, Trump gave a 75-day extension to the deadline to allow room for negotiations. Reuters reported that this deal came into effect when the U.S. imposed a 54% tariff on Chinese goods. In response, China is not giving the green light to the deal at all.
Ongoing Discussions on TikTok deal
Trump said to the reporters in the Oval Office that the TikTok deal is “very much on the table”.
“We have a deal with some very good people, some very rich companies that would do a great job with it, but we’re going to have to wait and see what’s going to happen with China.”
Recently, the deal for American investors to take control of TikTok’s U.S. operations had been paused. However, Trump has restated his support for the initiative.
Senators Question Legality of TikTok
Senator Mark Warner strongly opposed Trump, saying that he lacks the authority to extend the deadline. Warner also criticized that the structure of the current proposal doesn’t fulfill the existing USA laws.
Ed Markey tried to pass a law to push the deadline to October, but the legislation was blocked in the Senate.
National Security Warns Investors against Chinese Ties
Reuters reported that Senator Tom Cotton warned potential American investors to have no ties with TikTok’s Chinese parent company. Cotton said:
“These potential buyers may ask Congress to somehow indemnify them for violating the law or immunize them for TikTok’s past crimes and injuries to the American people. To any American who wants to invest in a half-assed TikTok deal, Congress will not protect you from going into business with communist China.”
Chinese Approval and Legal Complications
TikTok still has not given a word on the ongoing discussion. According to a source from ByteDance, work is still happening on the deal with a deadline of June 19. However, Chinese approval is still required to resolve US-China trade tensions, including tariffs.
Enforcement Delayed by Trump
According to the original legislation, TikTok must have halted its operations by January 19 if not sold to a non-Chinese buyer. Trump chose to extend the date for the deal to lock. As China has opposed accepting the 125% tariff, the deal to sell TikTok’s assets has been stalled, indicating that China would not confirm the deal.
