US efforts to ban TikTok began throughout Trump’s first time period in 2020. Months earlier than he left workplace, Trump threatened to ban TikTok and one other Chinese language app WeChat. The Biden administration rescinded Trump’s government orders on the subject however continued to scrutinize TikTok. The US congress ultimately handed the Defending Individuals from International Adversary Managed Functions (PAFACA) Act in April 2024. This gave TikTok two choices: divest from its Chinese language possession earlier than January 19, 2025, or danger a federal ban.
The app briefly went darkish within the US forward of the deadline, then reappeared on app shops lower than 24 hours later and resumed companies for US customers.
Since Trump returned to energy, Washington’s stance on TikTok seems to have shifted. Trump has turn into a steadfast advocate for saving the app, which he credited with serving to him win the help of younger voters. He has repeatedly prolonged the deadline set by the PAFACA Act, most just lately to December 16, 2025, which some specialists have criticized as unlawful.
The deal that’s reportedly being proposed by the Trump administration may meet the necessities set by the PAFACA Act, says Alan Rozenshtein, an affiliate professor of regulation on the College of Minnesota Legislation College. However the reality stays that the deadline has been prolonged a number of occasions and American corporations like Oracle and Apple haven’t paid fines for persevering with to service the app.
“The way in which the regulation was written, the businesses had been chargeable for doing enterprise with TikTok, as much as $5,000 per US person. So if there are 170 million TikTok customers [in the US], they usually all used the platform within the final 9 months, and every of those platforms and every of those corporations has accrued probably as much as practically $1 trillion in legal responsibility,” Rozenshtein claims. He notes that it’s unlikely the Trump administration will accumulate that fantastic.
Some specialists in Washington imagine the deal doesn’t resolve the perceived nationwide safety points that sparked speak of a ban within the first place. “In plain phrases, possession change with out technical separation is a violation of the regulation,” says Craig Singleton, a senior fellow on the Basis for Protection of Democracies, a DC-based assume tank. He compares the deal to a “joint custody” reasonably than the “divorce” that the PAFACA Act required.
The Chinese language authorities has confused in latest statements that the deal will embody concessions from the US on non-TikTok points, equivalent to limitations to cross-border funding. “The US facet must present an open, truthful and non-discriminatory setting for Chinese language traders,” the Chinese language readout of the decision between Trump and Xi says.
If Beijing exchanges the TikTok deal for higher commerce phrases, ByteDance and its authentic traders might lose out. “It’s not nice. However it’s nonetheless higher than being utterly shut down and shedding fully to Meta. It’s in all probability like a C-minus final result,” says Rui Ma, founding father of Tech Buzz China, a analysis agency targeted on Chinese language tech.
Replace 9/19/25 6:00pm ET: This story has been up to date to incorporate a press release posted by ByteDance.
