US President Donald Trump wants to “save” TikTok, but wants the company…
WASHINGTON (Reuters) – President Donald Trump on Monday signed an executive order seeking a 75-day delay in implementing a ban on popular short video app TikTok that is scheduled to shut down on May 19. 1.
While signing the order, Trump suggested the US government should own half of TikTok’s US business in exchange for keeping the app alive and warned that he could impose tariffs on China if Beijing does not approve the US agreement with TikTok.
The executive order limits 48 hours of legal maneuvering and political intrigue that leaves millions of US TikTokkers struggling to find answers about their app’s fate.
The drama began on Saturday when the short video app used by 170 million Americans was taken offline just before a law required it to be sold by Chinese owner ByteDance for national security reasons. participation, otherwise it will be banned, effective Sunday.
The next day Trump said he had a plan to “Save TikTok”. Within hours, the company began restoring its service in the United States, and thanked the incoming President for assuring TikTok and its business partners that they would not face with heavy fines to keep the application running.
The app and website went live on Monday, but TikTok is not yet available for download on the Apple and Google app stores.
Trump’s order, signed hours after he took office on Monday, mirrors his earlier promises and directs the attorney general not to enforce the law to give his team time to “determine a course of action.” suitable for TikTok”.
But the legality of Trump’s executive order remains unclear. The law requiring divestment was passed by a large majority in Congress, signed by President Joe Biden, and unanimously upheld by the Supreme Court.
The law also does not grant Trump the authority to extend the deadline unless ByteDance has a “binding agreement” to sell TikTok, and it is unclear whether such an agreement exists.
ByteDance did not immediately respond to a request for comment on Tuesday.
Representative Frank Pallone said Trump’s order “circumvents national security legislation passed by an overwhelming bipartisan majority in Congress.”
STRESSED RELATIONS WITH CHINA
The TikTok debate comes at a tense time in US-China relations. Trump said he intends to impose tariffs on China but also said he hopes to have more direct contact with the Chinese leader.
While signing the executive order on Monday night, Trump said that he “could see” the US government holding a 50% stake in TikTok and that as part of that stake, the US could monitor the site.
Trump added that if a deal is not approved by China, “the deal has no value. So if we create that value, why don’t we get half?” He said the company could be worth hundreds of billions of dollars.
The US has never banned a major social media platform. The law passed last year gives the Trump administration sweeping powers to ban or seek to sell other Chinese-owned apps.
Trump’s rescue of TikTok represents a reversal of stance compared to his first term in office. In 2020, he unsuccessfully sought to ban the app — as well as Tencent’s WeChat — over concerns the company was sharing Americans’ personal information with the Chinese government.
More recently, Trump said he “has a soft spot for TikTok,” crediting the app with helping him win over young voters in the 2024 presidential election.
In late 2020, Trump reached an agreement on a new ownership structure with Walmart and Oracle agreeing to take an ownership stake in the new company.
Trump said the deal would include companies paying for a $5 billion US education fund as part of the deal. The deal ultimately fell through.
It is unprecedented for the U.S. government to demand equity ownership in a major company in exchange for approving its continued use.
Trump’s comments also did not address whether ByteDance or other Chinese entities would be allowed to hold shares in TikTok or whether the deal would address US national security concerns. about American user data or not.
The order directs the Department of Justice to send letters to companies such as Apple, Alphabet’s Google and Oracle that provide services to TikTok “clearly stating that there has been no violation of the statute and no liability for any conduct.” occurred during the above mentioned period. Stage.”
It’s unclear whether Trump’s order will be enough to convince Alphabet’s Google and Apple to restore the app to U.S. stores.
That announcement came as China first said it would be open to a transaction that would help TikTok operate in the US
When asked about reinstating the app and Trump’s desire to reach a deal, China’s Foreign Ministry said in a regular press conference Monday that it believes companies should “independently decide” on their activities and transactions.
It repeated similar comments Tuesday when asked about Trump’s executive order.
(Reporting by Kenneth Li and Katie Paul in New York, David Shepardson in Washington Additional reporting by Nandita Bose and Jeff Mason in Washington, Eduardo Baptista in Beijing; Writing by Chris Sanders; Editing by Shri Navaratnam and Stephen Coates)
