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Trump Pauses TikTok Ban Amid Legal and Sale Uncertainty

Trump Pauses TikTok Ban Amid Legal and Sale Uncertainty

Trump Pauses TikTok Ban Amid Legal and Sale Uncertainty \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Donald Trump has ordered a 75-day pause on enforcing the TikTok ban to evaluate security concerns and facilitate potential sale negotiations. The move comes amidst legal uncertainties and questions about TikTok’s future ownership. The delay provides ByteDance, TikTok’s China-based parent, additional time to respond to U.S. demands for divestment and address national security issues.

Trump Pauses TikTok Ban Amid Legal and Sale Uncertainty
TikTok CEO Shou Zi Chew sits before the 60th Presidential Inauguration in the Rotunda of the U.S. Capitol in Washington, Monday, Jan. 20, 2025. (Kevin Lamarque/Pool Photo via AP)

Trump Pauses TikTok Ban: Quick Looks

  • Ban Delayed: Trump issued a 75-day extension, stalling enforcement of the TikTok ban.
  • Executive Order Goal: Review national security risks and ensure a smooth transition if TikTok is sold.
  • Legal Uncertainty: Trump’s ability to override a law upheld by the Supreme Court may face challenges.
  • Ownership Concerns: ByteDance owns TikTok but faces pressure to sell its U.S. operations.
  • China’s Role: Beijing softened its stance but maintains a say in TikTok’s algorithm export.
  • Next Steps: Ongoing negotiations between ByteDance, U.S. companies, and regulators.

Deep Look

A Pause in the TikTok Ban

President Donald Trump directed the Justice Department to delay enforcement of the TikTok ban for 75 days through an executive order signed on Monday. This decision comes as the administration seeks to balance national security concerns with ensuring continuity for the app’s U.S. users. Trump’s move has raised questions about its legality, ByteDance’s willingness to sell TikTok, and whether these steps will ultimately address U.S. security concerns.

The federal law requiring ByteDance to divest TikTok, passed with bipartisan support, was upheld by the Supreme Court. Under this statute, TikTok would face a nationwide ban unless sold to an approved buyer. On Saturday, TikTok briefly became inaccessible in the U.S. but returned online after Trump publicly vowed to delay the ban. His executive order introduces a temporary reprieve but complicates the legal landscape for involved parties.

Legal Challenges Loom

Trump’s executive order could face opposition, as federal law specifies that extensions are contingent on “significant progress” toward a sale. Critics argue that delaying enforcement might exceed the president’s authority. The Electronic Frontier Foundation has already voiced concerns, calling the move potentially unconstitutional.

Additionally, Senator Tom Cotton has suggested legal action to enforce the ban, raising the possibility of a judicial showdown. Trump’s order warns that enforcement efforts could undermine executive authority, highlighting the complex interplay between branches of government on this issue.

TikTok’s Sale: A Murky Path Forward

The delay buys time for ByteDance to explore selling TikTok’s U.S. operations. Trump has floated the idea of a U.S.-brokered deal granting the government or an American buyer a 50% stake in the platform. However, key details remain unclear, including how such a deal would mitigate national security risks.

TikTok’s proprietary algorithm, managed by ByteDance engineers in China, remains a sticking point. The algorithm’s role in curating content is central to concerns about potential influence and data privacy risks. Trump’s executive order includes provisions for reviewing TikTok’s compliance with national security standards during the extension.

ByteDance’s ownership structure could complicate a sale. While 60% of the company is owned by global investors, founder Zhang Yiming and ByteDance employees control the remaining shares. It is uncertain whether ByteDance is willing to cede control of TikTok’s core technology, which Beijing considers a critical asset.

China’s Response

China’s reaction to the TikTok saga has been measured but firm. While initially critical of U.S. demands, Chinese officials signaled potential flexibility on Monday. Foreign Ministry spokesperson Mao Ning emphasized that decisions involving Chinese companies must respect China’s laws and market principles. This may open the door for negotiations but could also add layers of complexity to any sale.

Trump has threatened tariffs of up to 100% on Chinese goods if Beijing obstructs a divestment deal. Analysts believe Beijing might approve the sale of TikTok’s algorithm if the transaction serves mutual interests, but the situation remains highly fluid.

Impact on Tech Giants and Users

Tech companies are treading carefully as the situation evolves. As of Tuesday, Apple and Google had removed TikTok and other ByteDance apps, such as Lemon8 and CapCut, from their U.S. app stores. This cautious approach reflects the ongoing uncertainty surrounding the ban and its enforcement.

For TikTok’s vast user base, the platform’s future remains unclear. While Trump credited himself with keeping TikTok operational over the weekend, the app’s long-term availability in the U.S. hinges on resolving these legal and geopolitical disputes.

What Comes Next?

The next 75 days will involve intense negotiations, both within the U.S. and between the U.S. and China. Trump’s administration must assess ByteDance’s compliance with national security standards while navigating legal challenges to the executive order. Simultaneously, ByteDance faces mounting pressure to finalize a deal that satisfies U.S. demands.

Industry experts predict that negotiations will focus on TikTok’s algorithm and data handling practices. Gabriel Wildau, a managing director at Teneo, noted that a sale excluding TikTok’s algorithm might be more feasible legally but could diminish the app’s appeal to buyers. Beijing’s final stance on the algorithm’s export will likely play a decisive role.

“This is a game of high-stakes poker,” said Wedbush analyst Dan Ives. “TikTok is just one piece in a larger negotiation between the U.S. and China.”

A Political Dimension

Trump’s handling of the TikTok ban reflects broader tensions in U.S.-China relations. The app has become a flashpoint in debates over digital privacy, corporate ownership, and national security. Trump’s insistence on stalling the ban while pursuing a government-brokered deal underscores his strategic use of TikTok as both a political and economic bargaining chip.

Meanwhile, TikTok continues to influence American politics and culture. Trump has acknowledged the platform’s role in helping him connect with younger voters, making its future an issue with significant political implications.

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