In a move that has once again stirred the turbulent waters of international tech and trade, former President Donald Trump has granted TikTok a temporary reprieve from a looming ban in the United States. Citing the need for more time to finalize a deal that would separate the popular video-sharing app from its Chinese parent company, ByteDance, Trump extended the deadline by 75 days. This decision marks the second such delay this year, following an initial pause in January, even after the Supreme Court had unanimously upheld the law mandating the separation.

Trump took to his social media platform, Truth Social, to explain the decision, stating that the deal "requires more work to ensure all necessary approvals are signed." He also expressed his desire to avoid a scenario where TikTok would "go dark" in the U.S., suggesting a willingness to collaborate with both TikTok and China to reach a resolution. The former president even hinted at the possibility of leveraging the app as a bargaining chip in tariff negotiations with China.

This latest development underscores the complex and enduring challenges surrounding TikTok's presence in the United States. The app has faced years of scrutiny due to its ties to China, with concerns raised about potential data security risks and the spread of misinformation. Despite these concerns, TikTok has become a cultural phenomenon, boasting over 170 million users in the U.S. who use the platform for entertainment and creative expression.

The delay has also reignited questions about Trump's adherence to the rule of law, as the federal law requiring TikTok to change ownership or face a ban was passed with bipartisan support and went into effect in January. Trump's decision to pause enforcement of the law raises concerns about the balance of power between the executive branch and the legislative branch.

While the future of TikTok in the U.S. remains uncertain, the app will continue to operate for the foreseeable future. The delay followed intense negotiations and interest from potential buyers, including Amazon and private equity firm Blackstone. One potential deal structure involves existing U.S. investors in ByteDance rolling over their stakes into a new, independent global TikTok company, with additional U.S. investors brought on board to reduce Chinese ownership below the 20% threshold mandated by law.

However, it remains unclear whether such an arrangement would satisfy lawmakers and policymakers who have raised concerns about TikTok's Chinese ownership. Alan Rozenshtein, a former national security adviser to the Justice Department, noted that Congress could take action if they prioritized the issue, but suggested that there may not be sufficient political will to do so.

The concerns surrounding TikTok stem from fears that ByteDance could be compelled to share sensitive U.S. user data with the Chinese government, or that China could use the platform to spread misinformation. TikTok has repeatedly denied these allegations and has invested billions of dollars in security measures to address Washington's concerns, but has so far failed to win the trust of U.S. officials.

In a related development, escalating trade tensions between the U.S. and China are threatening to disrupt agricultural exports, fuels, and manufactured goods. China has vowed to retaliate against Trump's tariffs with equivalent measures, raising concerns about the impact on various sectors of the U.S. economy.

While China previously targeted specific industries in response to U.S. export restrictions, its broader plan to impose tariffs across the board signals a "significant warning shot" to the Trump administration. Lynn Song, chief economist for Greater China at ING, noted that China has become less dependent on U.S. suppliers and has made progress towards technological self-sufficiency.

The agricultural sector is particularly vulnerable, with U.S. farmers potentially facing significant losses due to China's retaliatory tariffs. Soybeans, oilseeds, and certain grains are key U.S. exports to China, and the added tariffs could make them too expensive to compete in the Chinese market.

In addition to agricultural goods, fuels and machinery are also at risk. China imported $14.7 billion of various fuels and oils from the United States last year, and tariffs could impact the oil and gas industry in states like Texas and Louisiana. The U.S. also exported $15.3 billion in electrical machinery to China last year, but semiconductor shipments have already been impacted by U.S. export controls on advanced tech.

Beyond tariffs, China has also restricted exports of rare earth elements and taken action against U.S. firms in the drone, defense, and aerospace sectors. China controls a significant portion of the world's rare earth element mining and refining, giving it leverage in areas such as semiconductor manufacturing, magnets, optics, and lasers.

As the trade conflict between the U.S. and China intensifies, both countries are resorting to a wider range of tools, raising concerns about the potential for further disruptions and economic consequences. Without an industrial policy response to scale up domestic production, the U.S. may be particularly vulnerable to Chinese controls.