On January 17, U.S. President Donald Trump announced another 90-day extension for the enforcement deadline of the TikTok “sell or be banned” mandate, allowing TikTok to secure additional operational time. According to CNN, White House Press Secretary Karoline Leavitt stated that Trump does not want TikTok to cease operations and is set to sign an executive order ensuring the continued operation of TikTok.

This 90-day extension provides the U.S. government time to facilitate a smooth transaction, allowing the public to continue using TikTok under data safety conditions. This marks Trump's third announcement of a ban extension. This mandate, originally signed by former President Biden and effective from January 19, required TikTok to be banned in the U.S. unless it sold its operations from ByteDance. Nonetheless, Trump has vowed not to enforce it, and apart from a brief 14-hour stoppage in January, TikTok has continued to operate normally.

Trump's announcement signifies that TikTok will continue to operate for its 170 million American users, even though Congress previously supported the ban due to national security risks posed by its Chinese ownership. This move occurs amid heightened tensions in China-U.S. trade negotiations, with TikTok seemingly becoming a bargaining chip. An agreement to transfer TikTok's U.S. operations to American ownership, while ByteDance retains a 20% stake, was nearing completion but fell through due to Trump's tariffs on China. Thus, Trump opted to delay the ban to allow TikTok to continue operating in the U.S. ByteDance indicated there are still “critical issues to resolve,” and any agreement must comply with Chinese laws.

This extension was originally set to expire on June 19. Trump's announcement has reignited concerns about TikTok's long-term presence in the U.S. The Chinese government has not yet provided a clear stance on whether it agrees to the sale of TikTok but has hinted that the “algorithm” cannot be part of any transaction, which is a crucial aspect of the application.

The announcement came shortly after China and the U.S. reached a framework agreement to ease export controls, which could help alleviate tensions and prevent further escalation in trade and technology conflicts between the two countries. While it remains unclear whether TikTok is included in the framework, cooperation between the two sides may make the agreement for transferring control of the app to the American side more feasible. Trump stated on the 17th that the TikTok deal “likely” requires approval from the Chinese government, but he believes that Chinese President Xi Jinping will ultimately agree to the transaction. This deal, which has been in planning since earlier this year, will involve multiple American venture capital funds, private equity firms, and tech giants investing in a company that will control TikTok's U.S. operations. Other notable interested bidders include billionaire Frank McCourt's team, Amazon, and MrBeast.

It is worth noting that Trump attempted to prohibit TikTok during his previous presidential term but later stated he “changed his mind after starting to use it.” TikTok CEO Shou Zi Chew also attended Trump's inauguration and was seen sitting on stage with cabinet members and other tech CEOs.