Trump delays TikTok ban, proposes U.S. stake in company
Foreign

Trump delays TikTok ban, proposes U.S. stake in company

By Advocate | January 21, 2025 | 2 min read |

By Akpos Oghenetega,

Former President Donald Trump signed an executive order on Monday delaying the enforcement of a TikTok ban by 75 days, giving the app a temporary reprieve from being shuttered. The ban, tied to national security concerns, was initially set to take effect on Jan. 19.

Trump proposed that the U.S. government take a 50% stake in TikTok’s U.S. business, arguing that such ownership would allow for proper oversight. He also warned of tariffs on China if Beijing failed to approve a U.S. deal with the app’s Chinese parent company, ByteDance.

The executive order capped days of uncertainty after TikTok, used by 170 million Americans, briefly went offline before being restored. Trump’s move seeks to “determine the appropriate course of action with respect to TikTok,” but its legality remains unclear.

The law requiring ByteDance to divest TikTok was passed by Congress, signed by President Joe Biden, and upheld by the Supreme Court, which does not grant authority to extend deadlines without binding agreements to sell the app.

ByteDance has yet to comment, but critics, including Representative Frank Pallone, have accused Trump of circumventing bipartisan national security legislation.

The TikTok controversy comes amid strained U.S.-China relations. While Trump has signaled intentions to impose tariffs on China, he has also suggested the U.S. government could police TikTok if it holds a stake, stating, “If we create value, why aren’t we entitled to half?”

Trump's actions represent a stark reversal from his earlier stance. In 2020, he attempted to ban TikTok over concerns it shared user data with the Chinese government. More recently, Trump credited the app with helping him connect with young voters during the 2024 presidential election.

A 2020 deal involving Walmart and Oracle to acquire TikTok’s U.S. operations fell apart despite Trump’s approval. However, the proposal for the U.S. government to demand equity in a company for continued operation remains unprecedented.

TikTok remains operational, though unavailable for download on major app stores, as legal and political battles over its future continue.

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