TikTok Sale Talks May Resume After U.S.–China Trade Breakthrough

The long-running uncertainty around TikTok’s future in the U.S. may be closer to resolution, as a new trade agreement between the U.S. and China potentially reopens negotiations over the app’s ownership.

This week, the U.S. announced a rollback of tariffs on Chinese goods, signaling a pause in escalating trade tensions. While primarily economic, the move may also have significant implications for TikTok, which has faced an enforced divestment order due to national security concerns.

Under legislation passed earlier this year, TikTok must be sold to a U.S.-based company or face a ban. Though the initial deadline has passed, the Trump administration has issued multiple extensions, most recently in the form of a 75-day Executive Order aimed at giving TikTok and ByteDance time to broker a deal that satisfies both U.S. lawmakers and Chinese regulators. A number of large companies also made eager bids to buy the platform, or attempted to create their own counterpart to the app, hoping to capitalise on its success regardless of whether the ban was removed or approved.

Progress had stalled as China refused to engage in discussions while new tariffs loomed. With that pressure now eased, observers suggest Beijing could resume talks, potentially paving the way for a long-discussed agreement that would see TikTok’s U.S. operations shift to Oracle. Any such deal would need to comply with strict provisions under the “Protecting Americans from Foreign Adversary Controlled Applications Act,” including limiting foreign ownership and severing control over TikTok’s recommendation algorithm.

Though no formal deal has been announced, a framework may already exist. A resolution would bring relief to marketers and creators who have faced prolonged uncertainty about TikTok’s status. For brands heavily invested in TikTok as a marketing platform, a finalized agreement would help stabilize content strategies and ad spending for the remainder of the year.