Recently, President Donald Trump announced that TikTok has 90 more days to find an owner that isn’t based in China, or it will face a ban in the U.S.

Trump shared on his Truth Social platform that he signed an Executive Order to extend the deadline until September 17, 2025, marking the third time the ban has been postponed.

This federal law, aimed at ensuring national security, was supposed to take effect just before Trump was inaugurated.

Despite his past calls for a ban, Trump has expressed a fondness for TikTok, which plays a significant role in his 2024 election strategy.

“I have a little warm spot in my heart for TikTok,” he mentioned in an NBC News interview. “If it needs an extension, I would be willing to give it one.”

TikTok responded positively to Trump’s announcement, stating that it appreciates the president’s efforts to keep the service accessible for over 170 million American users.

The Digital Struggle

The push for a ban on TikTok stems from concerns in Washington that it is under the influence of the Chinese government. The potential ban was introduced on January 19, right before Trump’s inauguration, despite no engagement from ByteDance to sell the platform.

Shweta Singh, an assistant professor at Warwick Business School in the UK, noted that TikTok has become a significant symbol in the tech competition between the U.S. and China.

Initially, Trump favored a ban or forced sale, but he later shifted his stance, realizing TikTok’s potential in appealing to younger voters.

He first delayed the ban upon taking office, which was then extended again to June 19.

In May, he mentioned that interested buyers were prepared to invest heavily in TikTok’s U.S. operations.

According to White House spokesperson Karoline Leavitt, Trump recognizes TikTok’s immense popularity in the U.S. and aims to protect American users’ data while allowing the app to continue operating.

Analyst Rob Enderle shared that unless TikTok jeopardizes its relationship with Trump, it likely remains safe from the proposed ban.

Trade Tensions

Trump indicated that China would have considered selling TikTok if not for ongoing disputes regarding tariffs.

ByteDance has confirmed ongoing discussions with the U.S., highlighting that certain key issues still need resolution and any agreement would have to comply with Chinese law.

One potential solution could involve U.S. investors in ByteDance transferring their shares into a newly formed independent TikTok firm.

Additional U.S. investment from companies like Oracle and Blackstone could further diminish ByteDance’s control of the new entity.

Currently, most of TikTok’s U.S. operations are already managed through Oracle, whose chairman, Larry Ellison, has longstanding ties with Trump.

Uncertainties linger, especially regarding the fate of TikTok’s valuable technology.

Kelsey Chickering, a principal analyst at Forrester, remarked that without its algorithm, TikTok would lose its distinctive power.

Despite these challenges, TikTok continues to operate normally and recently launched a new suite of generative AI tools, named “Symphony,” to help advertisers create video clips.