In a notable turn of events, former President Donald Trump has once again extended the deadline for TikTok to finalize a deal that would separate it from its Chinese parent company, ByteDance. Citing the need for more work to ensure all necessary approvals are secured, Trump announced the extension on his social media platform, Truth Social, granting TikTok an additional 75 days to comply with U.S. law. This law aims to address national security concerns by requiring TikTok to change its ownership structure, stipulating that no more than 20% of the company can be owned by entities in countries considered foreign adversaries, including China.

This marks the second time Trump has delayed enforcement of the law this year, having previously paused it in January despite unanimous support for it from the Supreme Court. The decision reflects the complexities surrounding TikTok, which has faced years of scrutiny in the United States over its ties to China. Despite concerns raised by lawmakers and U.S. officials about potential data security risks, TikTok has become a cultural phenomenon, boasting over 170 million users in the country who use the platform for creating memes and sharing videos.

The extension has raised questions about Trump's willingness to prioritize his presidential power over the rule of law. The federal law in question was passed last year with bipartisan support and took effect in January. However, Trump's decision to pause its enforcement has effectively overridden the law. For now, TikTok will continue to operate in the United States, but the future remains uncertain.

The delay comes after intense negotiations and interest from potential buyers. Vice President JD Vance, who was involved in the deal talks, indicated that a deal was imminent. Amazon submitted a bid, and Blackstone also considered taking a stake in TikTok. Speculation has centered on a deal where existing U.S. investors in ByteDance would roll over their stakes into a new independent global TikTok company. Additional U.S. investors would be brought on to reduce the proportion of Chinese investors.

However, it is unclear whether this arrangement would satisfy the law or the policymakers who pushed for it. Concerns about TikTok's Chinese ownership have been ongoing for years, with intelligence officials and lawmakers arguing that ByteDance could potentially hand over sensitive U.S. user data to Beijing. TikTok has denied these allegations and has invested billions of dollars in security measures to address Washington's concerns, but it has not been enough to gain the trust of policymakers.

In a separate development, escalating tensions between the United States and China are set to impact U.S. agricultural exports. President Donald Trump's new tariffs on Chinese goods have prompted Beijing to retaliate with equivalent tariffs on U.S. goods. This move is expected to hit U.S. agricultural exports, fuels, and manufactured goods. China's broader plan marks a significant warning to the Trump administration to hold off further measures.

The United States exported $144.6 billion in goods to China in 2024, including electrical and electronic equipment, fuels, oilseed, and grains. However, China's confidence to retaliate has grown compared to Trump's first presidency. While the U.S. remains an important market, fewer firms are now dependent on U.S. suppliers. China has also made efforts towards technological self-sufficiency.

U.S. farmers are expected to bear a heavy burden as their agricultural exports to China may become too expensive to compete with Beijing's added tariffs. Soybeans, oilseeds, and certain grains were key U.S. exports to China, amounting to $13.4 billion last year. China bought 52% of U.S. soybean exports in 2024, and its purchases cannot be easily replaced.

China also imported $14.7 billion of various fuels and oils from the United States last year. Tariffs could impact the oil and gas industry in states like Texas and Louisiana. Additionally, the U.S. exported some $15.3 billion in electrical machinery to China last year. However, semiconductor shipments have faltered due to expanding U.S. export controls on advanced tech.

Besides tariffs, China has restricted exports of rare earth elements and taken action against U.S. firms. China controls about 69% of rare earth element mining and 90% of refining, which could affect semiconductor manufacturing, magnets, optics, and lasers. With Washington and Beijing turning to a growing range of tools in their conflict, the U.S. is relatively exposed to these Chinese controls without an industrial policy response.