Deal Reached to Keep TikTok Running in the U.S.
On September 16, 2025, President Donald Trump announced that the U.S. and China have reached an agreement to allow TikTok to continue operating in the United States. The deal involves transferring TikTok’s assets from the Chinese company ByteDance to U.S. owners, potentially bringing an end to a lengthy period of negotiations that have lasted nearly a year.
This agreement comes amid growing concerns regarding the app, which boasts 170 million users in the U.S. It represents a significant development in trade discussions between the two largest economies, aiming to ease tensions that have unsettled global markets.
Trump remarked, “We have a deal on TikTok… We have a group of very big companies that want to buy it,” although he didn’t elaborate on the specifics.
He praised the trade agreement with China, suggesting that it would be an upgrade for both nations and could preserve billions in value. “The kids want it so badly,” he added, referencing parents who have reached out to him, emphasizing that this isn’t just for adults but primarily for young users.
However, any contract would need approval from Congress, which is under Republican control. A law passed in 2024 during the Biden Administration mandated divestment over fears that Chinese authorities could access TikTok’s U.S. user data, raising national security concerns.
Despite this, the Trump administration has avoided enforcing a shutdown, worrying it might upset users and impact political communications. They’ve extended divestiture deadlines multiple times.
Trump often credited TikTok with aiding his re-election campaign last year, noting that he has 15 million followers on the platform. Recently, the White House launched an official TikTok account.
Reports suggest the deal might be finalized within the next month and could involve existing investors from TikTok’s parent company, ByteDance, as well as new U.S. investors.
While CNBC reported this expected closure, Reuters has not yet confirmed those details. But they align with previous reports indicating a plan to create a U.S.-based company largely owned and operated by American investors.
There were earlier discussions regarding the acquisition of TikTok during the spring, but these stalled when China signaled disapproval after tariffs on Chinese goods were announced by Trump.
The U.S. maintains that ByteDance’s ownership ties TikTok to the Chinese government, leading to fears it could be used to surveil American citizens. In response, ByteDance has argued that U.S. officials have misrepresented its links to China, asserting that user data is stored on U.S. servers operated by Oracle, which also handles moderation for American content.
Reports now indicate that Oracle will retain its cloud arrangement with TikTok as part of this new deal. The White House’s intention is to have Oracle and outside investors help manage the app’s operations.
In related news, shares of Oracle experienced a slight increase following the TikTok announcement, rising nearly 3% on Tuesday.
A framework deal was reportedly established by representatives from both countries on Monday, following months of intense negotiations, highlighting a level of White House involvement never seen before in such discussions.
As trade tensions escalated, U.S. and Chinese delegations engaged in talks regarding this divestment, which is tied to larger disputes about tariffs and technology exports.
Final confirmation of the deal is anticipated to take place in a phone call between Trump and Chinese President Xi Jinping on Friday.
Various potential buyers, including Frank McCourt, a former owner of the Los Angeles Dodgers, and a startup led by the founder of OnlyFans and Amazon, have shown interest in acquiring TikTok, which analysts believe could be valued at around $50 billion.
