An agreement to separate US assets from Tiktok was suspended after China indicated that it would not approve the deal after the announcement of reciprocal tariffs by US President Donald Trump, according to two sources familiar with the matter.
The agreement, whose structure was widely finalized on Wednesday (2), according to one of the sources, would have dismembered US Tiktok operations in a new US-based company, mostly owned and operated by US investors. Chinese Bytedance, current owner, would stop a minority position of less than 20%.
The agreement was approved by existing investors, new investors, bytedance and the US government, the source said.
Bytedance and the White House did not immediately respond to a request for comment. The Chinese embassy in Washington DC also did not immediately respond to the comment for comment.
On Friday, President Donald Trump reached for 75 days the deadline for the Chinese technology company to sell US assets from the popular Tiktok popular video application to a non-Chinese buyer, or facing a ban that should have entered into force in January, according to a 2024 law.
“The agreement requires more work to ensure that all necessary approvals are signed,” Trump said on social networks, explaining why he was extending the deadline he established in January, to expire on Saturday (5).
“We hope to continue working in good faith with China, which I understand that he is not very happy with our reciprocal tariffs,” he added.
China now faces a 54% rate on imported goods for the United States after Trump announced a 34% increase this week.
The Asian country announced a retaliation on Friday. Trump said he would be willing to reduce rates on China to close an agreement with Bytedance, selling the application used by 170 million Americans.
This content was originally published in an Tiktok agreement was suspended due to US tariffs to China, a source says on CNN Brazil.
Source: CNN Brasil
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