Trump Announces Tentative Deal for TikTok's U.S. Operations to Avert Ban
Washington D.C. – In an escalating campaign that challenges decades of economic tradition, President Donald Trump has announced that a deal has been reached to restructure the U.S. operations of the popular social media app TikTok, a move aimed at resolving long-standing national security concerns and preventing a nationwide ban. The framework would place the platform under the control of an American-led consortium.
"We have a deal on TikTok," President Trump stated, confirming he had "reached a deal with China." He added that he would speak with Chinese President Xi Jinping to finalize the details.The proposed agreement would create a new, separate entity for TikTok's U.S. operations. An American consortium, reportedly including major firms like Oracle, Silverlake, and Andreessen Horowitz, would acquire an 80% ownership stake. ByteDance, the app's Chinese parent company, would retain the remaining 20% minority stake. The new company's board would also have an American majority, with one seat to be appointed directly by the Trump administration.While the president has given his approval to the framework, the deal is not yet final and requires official sign-off from both the U.S. and Chinese governments.
The National Security Stakes
The push for this deal stems from TikTok's explosive growth and the U.S. government's deep-seated fears over its Chinese ownership. The platform boasts between 1.6 and 1.9 billion monthly users worldwide, with a staggering 170 million in the United States—nearly half the country's population.
Its influence is particularly strong among younger generations; nearly half of Americans under 30 report getting their news from the app. This has transformed TikTok from a simple entertainment app into a cultural and political powerhouse.
The core of Washington's concern is national security. U.S. officials fear that under Chinese law, ByteDance could be compelled to share the vast amounts of data it collects on American users—including location, contacts, and browsing habits—with the Chinese government.
The Algorithm: The Crown Jewel and Sticking Point
At the heart of the dispute is TikTok's powerful recommendation algorithm. The "For You" feed is a sophisticated machine-learning engine that has proven incredibly effective at keeping users engaged. The average U.S. adult spends 52 minutes on the app daily, while the average for teenagers is nearly 90 minutes.
Washington fears this algorithm could be manipulated by Beijing to shape American public opinion, an influence it deems unacceptable. China, however, considers the algorithm a state-protected technology and has been unwilling to sell what it views as its "crown jewel." Under the current framework, ByteDance would likely license the algorithm to the new U.S. entity rather than selling it outright.
What Happens Next?
This is not the first attempt to resolve the TikTok issue. During his first term, President Trump tried to force a sale that ultimately collapsed. In 2024, the U.S. Congress passed a bipartisan law giving ByteDance an ultimatum: either divest from its U.S. operations or face a complete ban. After returning to office and threatening a full shutdown of the app, which would have cost ByteDance tens of billions of dollars, negotiations resumed in earnest.
President Trump has set a deadline of December 16, 2025, for negotiators to finalize the agreement.
If the deal goes through, TikTok will continue to operate in the U.S., but as a split entity—an American-controlled company running on a Chinese-licensed brain. If the deal collapses, the administration could move forward with a ban, a "nuclear option" that would have significant economic and cultural repercussions. The upcoming call between President Trump and President Xi will be a critical indicator of which path the digital giant will take.
