U.S. President Donald Trump announced his willingness to extend the June 19 deadline for ByteDance, the Chinese owner of TikTok, to divest its U.S. assets if no deal is reached by then. Having a strategic interest in TikTok due to its role in garnering young voter support in his 2024 campaign, Trump emphasized the app's importance while ensuring its protection. Efforts to spin off TikTok's U.S. operations into a U.S.-based entity have stalled due to China's resistance following Trump's tariff hikes on Chinese goods. Despite Democratic senators questioning Trump's legal authority to delay the deadline, ByteDance's U.S. investors continue to work on the deal, contingent on resolving U.S.-China tariff disputes. Trump remains firm on maintaining tariffs unless a broader agreement with China is reached, highlighting their significant economic impact on China, but is open to lowering them eventually to facilitate business relations.

President Trump is prepared to extend the deadline for ByteDance to divest TikTok's U.S. assets, initially set for June 19, if an agreement is not achieved by that time, highlighting the app's significance due to its role in his electoral success among young voters.

The divestiture plan, intended to create a U.S.-based and U.S.-investor-majority-owned TikTok, has faced obstacles due to China's refusal to approve the deal amid heightened tensions from Trump's tariff policies on Chinese imports.

Democratic senators express skepticism over Trump's authority to prolong the deadline, suggesting that the previously considered deal might not satisfy legal standards, thus complicating the divestiture process.

Negotiations between ByteDance's U.S. investors and the involved parties continue, yet progress hinges on resolving the tariff conflict between the U.S. and China, which remains a significant sticking point.

Trump emphasizes the substantial impact of the 145% tariffs on Chinese goods on China's economy, asserting that while he won't reduce them merely to negotiate, he may consider lowering them as part of a comprehensive trade agreement.

The legislation required TikTok to cease U.S. operations by January 19, but Trump, having started his second presidential term on January 20, chose not to enforce it and has since extended the deadline twice, most recently to June 19.

China is reportedly eager to find a resolution, motivated by the desire to engage in business under more favorable conditions, aligning with Trump's indication that eventual tariff reductions could enhance bilateral trade opportunities.