Countdown to TikTok Ban in the U.S.: Trump Considers Reducing Tariffs to Facilitate Agreement
U.S. President Trump to Meet on Proposal to Divest TikTok’s U.S. Business from Chinese Parent Company ByteDance
U.S. President Trump will meet on Wednesday to consider a proposal to divest TikTok’s U.S. business from its Chinese parent company, ByteDance. The proposal includes the establishment of a joint venture between Oracle and Blackstone, with Oracle providing security assurances for U.S. data. Trump stated that he would consider lowering tariffs imposed on China to ensure Beijing’s support for the sale.
Reports Indicate Oracle and Blackstone Involved in TikTok Sale Agreement
According to Bloomberg, with only a few days left until the deadline for TikTok’s sale, President Trump will meet on Wednesday to consider the proposal to divest TikTok’s U.S. operations from its parent company, ByteDance Ltd. The proposal involves Oracle and Blackstone forming a joint venture, with Oracle ensuring the security of U.S. data while potentially handing over the app’s algorithms to China.
Insiders indicate that Trump will consult with Vice President JD Vance and other officials who are assisting in the negotiations for the forced sale.
Oracle to Provide Security for U.S. Data
Reports suggest that Oracle will acquire a minority stake in the new U.S. entity. According to a previously circulated proposal within the government, Oracle will ensure the security of U.S. data, but it may hand over the app’s valuable algorithms to Chinese entities.
As part of a collaboration known as “Project Texas,” Oracle has established significant cloud infrastructure to work with TikTok. It is also being used to help the app block sensitive U.S. user data from ByteDance, although the plan ultimately failed to gain approval from Washington regulators.
Trump Considering Lowering Tariffs on China to Facilitate Agreement
Trump must find a buyer for TikTok’s U.S. operations by April 5, or the app will be banned in the U.S. However, Trump has indicated a willingness to extend the deadline if necessary. Last year, bipartisan lawmakers passed legislation signed by former President Biden aimed at addressing concerns about the Chinese government potentially collecting sensitive data on U.S. citizens.
Trump has already extended the deadline once from the initial date of January 19. Even if he signs the proposal, it will still require approval from TikTok’s parent company and the Chinese government.
However, he seems unconcerned about the approaching deadline, stating this week that there are many stakeholders interested in the app. He also mentioned that he would consider lowering tariffs imposed on China to ensure Beijing’s support for the sale.
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