After all, it was Donald Trump, the boy who wanted to save Tiktok, who could completely kill the short video clip app left in the US, has learned the money.
On Wednesday, Trump struck China, the country that controls Tiktok, with a 145% fee for all imported goods because it particularly decided to retaliate against the United States “with an 84% tax.
With Trump now singling out only China for his commercial war as he stopped him for the rest of the world, Tiktok’s grueling negotiations have come to a stop that is likely to be difficult to overcome, people with direct knowledge of the matter say.
The reason is that the TIKTOK deal is not a simple M&A transaction. It is closer to a geo-political bondoggle, with multi-layer.
The application, owned by the technique by the Chinese technology company bydthance but controlled by Bejing, always needed approval by the communist regime to sell to a new majority US ownership company.
Trump’s return to reciprocal tariffs on Wednesday that set the trade war pause for the whole world, besides China is making a deal, but impossible, sources told the money.
“The Chinese do not like to lose their face in public, so this deal is dead,” said a Wall Street executive with direct knowledge of negotiations.
Another person involved in the discussions said: “Now they (the Chinese) will not sell. That’s for sure.”
Trump himself was just a little softer when asked Wednesday how China’s trade control will affect a Tiktok deal.
“We will have to wait to see what will happen to China,” he said.
The future of Tiktok in the US has been in limbo since Trump took office in January.
His first 75-day extension ended last week without an agreement, so Trump adopted another 75-day extension. This means that Tiktok can still operate in the US as members of the agreement team – big institutional investors, the White House and Chinese – can end a structure that renounces Chinese TIKTOK control, but in a way that the Chinese government and the Chinese government can live with it.
Another issue that casts doubt on the survival of Tiktok at the US is that it may be legally difficult for Trump to continue to extend that important deadline to meet the law.
Meanwhile, if any kind of trade with China is achieved, Chinese President Xi may not want to make the Trump administration a solid and agree with the conditions as TIKTOK will remain globally important even if it is banned in the US
“Is Trump simply will continue to leave the additions? Maybe, but that may not be legal, and XI does not seem to be in the mood to hit an agreement in Tiktok given what happened Wednesday,” Wall Street’s executive with knowledge of negotiations said.
The Chinese loved part of the minorities in the new American company; They also do not want to sell the ticketing crown jewel – its technology, the algorithm that wins the videos based on the preferences of users that lawmakers claim can be used to spy on American citizens.
The Chinese have long denied the issue of espionage, but US lawmakers remain concerned even with the new structure if it provides sufficient protection from the claimed Spycraft. This is a reason it took so long to come up with a structure that complemented all competitive constituencies.
Tiktok looks small potatoes given the considerable issues that both parties have to iron from tariffs in different trading barriers. Treasury secretary Bessent said the administration is weighing by deleting Chinese reserves from US exchanges, which will add more fuel to the trade trade.
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