Despite law, U.S. TikTok ban likely to remain on hold
U.S. President Donald Trump is widely expected to extend the Thursday deadline for TikTok to find a non-Chinese buyer or face a ban in the United States.
It would be the third time Trump put off enforcing a federal law requiring its sale or ban, which was to take effect the day before his January inauguration.
"I have a little warm spot in my heart for TikTok," Trump said in an NBC News interview in early May. "If it needs an extension, I would be willing to give it an extension."
Trump said a group of purchasers is ready to pay TikTok owner ByteDance "a lot of money" for the video-clip-sharing sensation's U.S. operations.
Trump has repeatedly downplayed risks that TikTok is in danger, saying he remains confident of finding a buyer for the app's U.S. business.
The president is "just not motivated to do anything about TikTok," said independent analyst Rob Enderle. "Unless they get on his bad side, TikTok is probably going to be in pretty good shape."
Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform after coming to believe it helped him win young voters' support in the November election.
"Trump's not really doing great on his election promises," Enderle maintained. "This could be one that he can actually deliver on."
Motivated by national security fears and belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on January 19, one day before Trump's inauguration, with ByteDance having made no attempt to find a suitor.
TikTok "has become a symbol of the U.S.-China tech rivalry; a flashpoint in the new Cold War for digital control," said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain.
"National security, economic policy, and digital governance are colliding," Singh added.
The Republican president announced an initial 75-day delay of the ban upon taking office.
A second extension pushed the deadline to June 19.
As of Monday, there was no word of a TikTok sale in the works.
Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over tariffs imposed by Washington on Beijing.
ByteDance has confirmed talks with the U.S. government, saying key matters needed to be resolved and that any deal would be "subject to approval under Chinese law".
Possible solutions reportedly include seeing existing U.S. investors in ByteDance roll over their stakes into a new independent global TikTok company.
Additional U.S. investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance's share in the new TikTok.
Much of TikTok's U.S. activity is already housed on Oracle servers, and the company's chairman, Larry Ellison, is a longtime Trump ally.
Uncertainty remains, particularly over what would happen to TikTok's valuable algorithm.
"TikTok without its algorithm is like Harry Potter without his wand; it's simply not as powerful," said Forrester Principal Analyst Kelsey Chickering.
Meanwhile, it appears TikTok is continuing with business as usual.
TikTok on Monday introduced a new "Symphony" suite of generative artificial intelligence (AI) tools for advertisers to turn words or photos into video snippets for the platform.
"With TikTok Symphony, we're empowering a global community of marketers, brands, and creators to tell stories that resonate, scale, and drive impact on TikTok," global head of creative and brand products Andy Yang said in a release.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NDTV
13 minutes ago
- NDTV
What's New in the Senate Version of Trump's Tax and Spending Bill
Senate Republicans plan to modify President Donald Trump's massive fiscal package to lower maximum deductions for state and local taxes and limit the impact of a "revenge" tax on foreign investors. Senate GOP leaders also plan to cut deeper into Medicaid health insurance for the poor and disabled than House Republicans did in their version of the legislation to help pay for Trump's tax cuts. Republicans on the Senate Finance Committee released their version of the legislation, which also would make permanent some business tax breaks that would only run through 2029 in the version the House passed last month by a single vote. Here are some of the key differences between the Senate and House tax bills. 'Revenge' Tax The House bill's Section 899 "revenge" tax has alarmed Wall Street analysts who warn it would create another disincentive for foreign investors already rattled by Trump's erratic trade policies and the nation's deteriorating fiscal accounts. Senate Republicans responded by delaying and watering down the levy, which would increase tax rates for individuals and companies from countries whose tax policies the government deems "discriminatory." The Senate version would postpone that new tax until 2027 for calendar-year filers and raise it by 5 percentage points a year until it hits a 15% cap. The House version of the tax would take effect sooner and rise to 20% over four years on individuals and firms from targeted countries. State and Local Tax Deduction Senate Republicans want to significantly scale back the House bill's $40,000 limit on state and local tax deductions, a move House Republicans from high-tax states such as New York, New Jersey and California are fighting. The Senate's version of the tax bill calls for a $10,000 SALT cap, which leaders acknowledge is merely a placeholder figure as they try to hash out a compromise. There are no Senate Republicans from those high-tax states, and they've made no bones about the fact that it's not a priority for them. Car Loans Senators want to restrict to new cars a House-passed provision allowing car buyers to deduct up to $10,000 a year in interest on their auto loans through 2028 for vehicles built in the US. Ohio Republican Senator Bernie Moreno, a former car dealer, pushed for the language. Moreno had also sought to make the tax break permanent, but the draft keeps it a temporary benefit. A Rivian R1S electric vehicle charges at a dealership and service center in California. Electric Vehicles The Senate bill would eliminate a popular $7,500 credit for the purchase of electric vehicles 180 days after the bill becomes law, as opposed to expiring at the end of the year for most vehicles in the House version. That could be a difference of a few days, or longer, depending on the timing of the bill. Child Tax Credit Both the House and Senate bills seek to boost the child tax credit but they do so in different ways. The Senate legislation would increase the maximum per-child credit from $2,000 to $2,200, making it permanent and adjust it for inflation in later years. The House bill would boost the tax break to $2,500, but it would decrease after 2028. A tip jar at a cafe in Brooklyn. Tipped Workers The Senate bill contains new limits on Trump's campaign promises to exempt tips and overtime from taxation. It caps the amount of tipped wages that can be exempt at $25,000 per individual and overtime at $12,500 per individual and $25,000 per couple. The breaks phase out above $150,000 in income for individuals and $300,000 for couples, and, like the House bill, they expire after 2028. Seniors The Senate bill expands a maximum $4,000 bonus standard deduction for seniors to $6,000 in an effort to better offset all Social Security taxes paid, a promise by Trump. Medicaid Cuts The Senate bill makes more aggressive cuts to the Medicaid program for low-income and disabled people than the reductions in the House bill, favoring states like Texas and Florida that did not expand Medicaid under the Affordable Care Act. The Senate bill also would require parents with children 15 and older to work or do community service for 80 hours per month to qualify for health insurance through Medicaid. The House plan exempted all people with dependents from the work requirements. An entrance to Harvard Yard on the Harvard University campus. University Endowment Tax The Senate bill significantly pares back the House's plans to increase taxes on investment income generated by private university endowments. While the House proposed a levy as high as 21% on institutions with the largest endowments, the Senate version would cap the tax hike at 8%. The bill does not include a tax on private foundations found in the House bill. Permanent Business Tax Breaks The panel also plans to permanently extend three business-friendly tax breaks that end after 2029 in the House version. Those provisions include the research and development deduction, the ability to use depreciation and amortization as the basis for interest expensing and 100% bonus depreciation of certain property, including most machinery and factories. Gun Tax Breaks The Senate version would eliminate taxes and other regulations on many guns and silencers subject to the National Firearms Act of 1934 in a win for gun-rights advocates.
NDTV
13 minutes ago
- NDTV
Donald Trump Enters Telecom Market With Gold-Colored 'T1 Phone'
New York: If Trump watches or sneakers or bibles aren't your thing, the family business just added another product to show your support for the US president: mobile phones. The Trump company announced Monday a new business, Trump Mobile, that will offer cell service in a licensing deal and sell gold phones by the summer. It's the latest in a string of new ventures struck despite mounting ethical concerns that the US president is profiting off his position and could distort public policy for personal gain. Eric Trump, the president's son running The Trump Organization in his absence, suggested the pitch is patriotism, emphasizing that the phones will be built in the US and the phone service will maintain a call center in the country as well. The announcement follows several real estate deals for towers and resorts in the Middle East, including a golf development in Qatar announced in April. A $1.5 billion partnership to build golf courses, hotels and real estate projects in Vietnam was approved last month, though the deal was in the works before Trump was elected. Trump has already used the main regulatory agency that will oversee Trump Mobile in personal disputes. The Federal Communications Commission has launched investigations of media outlets Trump dislikes and, in some cases, is personally suing. And the president himself last month criticized cell phone maker Apple, now a big business rival, because it planned to make most of its US iPhones in India, threatening to slap a 25% tariff on the devices. Eric Trump said that consumers deserve a phone that aligns with their values. "Hard-working Americans deserve a wireless service that's affordable, reflects their values, and delivers reliable quality they can count on," he said in a statement. The Trump phone deal comes as a mandatory financial disclosure report just filed with the government shows the president has moved fast in the last year to profit off his celebrity, taking in $3 million in revenue from selling "Save America" coffee table books, $2.8 million from Trump watches and $2.5 million from Trump branded sneakers and fragrances. The Trump Organization on Monday said the new, gold-colored phone available for $499 in August, called the T1 Phone, won't be designed or made by Trump Mobile, but by another company. The Trump Organization did not respond to repeated requests for more details on that and comment. IDC analyst Francisco Jeronimo said the monthly fee of just under $50 is pricey, the appeal beyond the most ardent MAGA loyalists doubtful and the business difficult given that cell phones break down. "It's not like selling hats and t-shirts. I'm not sure they have that all sorted of," said Jeronimo, adding "I'm not sure they are bringing great value to the American people." Donald Trump ventured into the telecommunication industry once before, giving speeches and promoting a multi-level marketing company called ACN that was eventually sued for fraud and misleading customers. In the first term, Trump was blasted by conservative and liberal government ethics experts alike for opening his Washington hotel to lobbyists and diplomats and violating his company's pledge to avoid even the appearance of a conflict between his private profit and the public interest. The company is feeling more emboldened now in the second term. The mobile service is partnering with existing cellular carriers with access to a 5G network, raising questions of how they will be treated by federal regulators now that they have partnered with his company. The Trump Organization said those companies are America's three biggest mobile network providers, an apparent reference to Verizon, AT&T and T-Mobile, the latter with a trademarked name that is very similar to Trump's T1 Mobile. The name given to the monthly service offer, The 47 Plan, and the monthly $47.45 monthly fee make reference to Trump's two terms, the 45th and the 47th. The service will include unlimited calls, texts and data and free roadside assistance and telehealth services. A mock-up of the planned phone on the company's website shows Trump's slogan "Make America Great" on the front and an etched American flag on the back. By sticking to licensing, the Trump family is limiting its risk. Still, the new service faces big challenges if it hopes to sell beyond the president's loyal MAGA fans. The Trump company tried to tap into support among the middle class in the first term with two mid-priced hotel chains. Called American Idea and Scion, and unveiled like the phone service Monday under a giant US flag in the Trump Tower atrium, they flopped. Despite taking in millions of dollars each year in various licensing deals and a string of new ventures, the Trump brand has taken a series of hits to its brand over the years. During his first term, the Trump name was stripped off residential buildings and hotels in Toronto, Panama and Manhattan. The Trump International Hotel in Washington, since sold, lost money even though the family opened its doors to businesses and governments trying to shape US policy. The average condo in 11 Trump-branded residential towers around the country underperformed the broader market during and immediately after Trump's first term. More recently, the value of Trump condos in New York City fell in the past two years as similar properties rise in value, according to brokerage CityRealty. The Trump Organization has had more success with some ventures launched in the first few months of his second term. Trump Media & Technology Group, a Florida company that operates the Truth Social media platform, filed plans with security regulators Monday to launch an exchange-traded fund tied to the prices of two popular cryptocurrencies. The ETF is part of the Trump family's rapidly growing crypto empire, which includes a new stablecoin and launching and promoting memecoins. The president's most recent financial disclosure report reveals he made more than $57 million last year from World Liberty Financial, a crypto company he and his sons helped launch in September.
Time of India
13 minutes ago
- Time of India
'Will come down so hard': Trump's big warning to Iran; says looking for 'real deal' not ceasefire
As the Middle East teeters on the edge of a wider war, US President Donald Trump delivered a stark warning to Iran: 'Not to touch our troops.' Speaking aboard Air Force One en route back to Washington, Trump said he was not in the mood for peace talks and hinted at a harsher American response if provoked. Tired of too many ads? go ad free now 'We'll come down so hard, it'd be gloves off,' he said. On his social media platform Truth Social, Trump doubled down: 'I have not reached out to Iran for 'Peace Talks' in any way, shape, or form… They should have taken the deal that was on the table, would have saved a lot of lives!!!' His comments come amid dramatic developments on the ground. Iran's capital, Tehran, is showing signs of panic. Long lines have formed at gas stations, the historic Grand Bazaar is shuttered, and thousands are reportedly fleeing west toward the Caspian Sea. Though no official evacuation order has been issued, Israel's warning for 300,000 residents to leave the city ahead of potential airstrikes has heightened tensions. Meanwhile, the Israeli military claims it has assassinated Gen. Ali Shadmani, a high-ranking commander in Iran's elite Revolutionary Guard. Iran has not confirmed the death. Trump's hardline stance appears to be supported by military moves. The USS Nimitz Carrier Strike Group is en route to the region, and US missile-defense ships in the eastern Mediterranean have already intercepted rockets aimed at Israel over the weekend. Allies call for restraint European leaders, including France, Germany, and the UK, are scrambling to calm the crisis. French Foreign Minister Jean-Noel Barrot urged Iran to return to talks 'without conditions' and warned against nuclear escalation or withdrawing from the Non-Proliferation Treaty. Italy's Prime Minister Giorgia Meloni also urged a return to diplomacy during her meeting with Trump at the G7 summit in Canada, even as Trump denied reports he had cut his trip short to work on a ceasefire. Tired of too many ads? go ad free now 'Much bigger than that,' he posted on Truth Social. India begins evacuations; Arab states condemn escalation India confirmed that it has begun evacuating students and nationals from Tehran, urging others to leave via Armenia. Meanwhile, 20 countries, including Egypt, Jordan, Saudi Arabia, and the UAE, issued a joint statement condemning Israel's 'aggression' and calling for an immediate ceasefire and regional nuclear disarmament. G7 issues stark warning G7 leaders released a joint statement emphasizing that Iran must never obtain a nuclear weapon. 'We affirm that Israel has a right to defend itself… Iran is the principal source of regional instability and terror,' the statement read. But for now, Iran says it won't negotiate while under attack. And Trump, when asked whether a diplomatic mission involving Vice President Vance and businessman Steve Witkoff might be dispatched, replied: 'Depends on what happens when I get back.'
