Why Trump is starting ‘not to give a crap' if TikTok goes dark — at least briefly
Trump has tired of China dangling TikTok as a carrot to gain an advantage in ongoing trade talks over tariffs, people with knowledge of the discussions said.
The two sides have been close to a trade deal, Trump and Treasury Secretary Scott Bessent have said in recent days, ahead of next Tuesday's deadline for an agreement.
3 There's a 50-50 shot TikTok fades to black come the Sept. 17 deadline for a deal – at least for a while until both Trump and Chinese President Xi Jinping settle on a trade pact that includes keeping the app live.
Donald Pearsall / NY Post Design
But those talks could also stretch into the fall as they hammer out the final details, Bessent has suggested.
That's why the betting inside the TikTok deal pool is that there's a 50-50 shot it fades to black come the Sept. 17 deadline for a TikTok deal – at least for a while until both Trump and Chinese President Xi Jinping settle on a trade pact that includes keeping the app live.
You might be thinking that Trump just might kick the can down the road with another executive order extension, right?
Well not so fast, I am told, including by one person close to the TikTok talks who relayed the lack of 'crap' Trump feels if the video-sharing app is briefly yanked.
The deal only works if US investors are ready to put up tens of billions of dollars to buy the app from the Chinese company ByteDance, and if the Chinese are willing to give up enough control to satisfy the ban law.
3 The deal only works if US investors are ready to put up tens of billions of dollars to buy the app from the Chinese company ByteDance, and if the Chinese are willing to give up enough control to satisfy the ban law.
AFP via Getty Images
Investors, however, are getting nervous over the multiple extensions by Trump that appear to be circumventing established law.
They fear there might come a point when Congress says enough.
Also, China wants to retain a minority stake in the company and ownership of the all-important app that keeps users engaged by offering them a nonstop supply of preferred videos.
Investors are hearing from China-hawks in Congress — those who really believe the app's user data is used by the Chinese surveillance state for spy-craft purposes — that even a minority stake by the Chinese might violate the law.
3 TikTok supporters in 2023 protesting against a ban.
Getty Images
If so, and if they agreed to a deal, these investors could be on the hook for hundreds of billions of dollars of liability if let's say a less deal-friendly DOJ after Trump leaves office brings a case given the way the ban law is written.
Some private investors are demanding indemnification or their out.
Trump may also be losing patience with the whole TikTok saga. He has touted that he has multiple buyers to create what is essentially a new US company to keep it alive, but people involved in the deal doubt that he will allow Xi to use it as a bargaining chip in the broader trade deal, I am told.
He isn't going to give up a lot just to keep TikTok alive, they predict.
A White House spokesman had no comment.
TikTok and its estimated 170 million US users got a new lease on life after its once fiercest critic, Trump, pulled a major U-turn. He wanted it banned when he was president the first time, believing it was used by the Chinese surveillance state for nefarious purposes.
More recently, he wanted it saved after he came to believe pro-Trump messaging on the app helped him win in 2024 by turning a swath of TikTok's youngish users into die-hard MAGA supporters.
Just hours into his second term, Trump overruled bipartisan legislation signed into law by President Biden and upheld by the Trump-friendly Supreme Court that banned the app unless it divested from the Chinese by Jan. 19.
Through executive orders he has extended the life of the app several times since.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 minutes ago
- Yahoo
Nvidia & AMD investors can put China chip tariff risks 'to bed'
Nvidia (NVDA) and AMD (AMD) have reportedly reached an agreement with the Trump administration to sell their products in China by giving the US government 15% of the revenue from those sales. Sevens Report Research founder Tom Essaye and Allspring Global Investments portfolio manager John Campbell weigh in on what the reported deal means for the companies, investors, and the artificial intelligence (AI) space at large. To watch more expert insights and analysis on the latest market action, check out more Opening Bid. Good to see you all, Tom, let me start with you here. We um, that Nvidia, AMD news, it's something that, you know, I haven't seen covering Corporate America for quite a while, giving 50% of your revenues just to get your sales back in China. What's the read through there, if anything to the broader AI trade? Thank you very much for having me on, Brian, and it's great to be back. Uh, yeah, I think that what the biggest takeaway for me is that these companies are ready to play ball with the administration to continue to grow their sales, right? And, and who knows how long this negotiation took place, but at the end of the day, the deal got done, the chips are being sold to China. Now, obviously, 85% of revenues out of those sales is not as good as 100%, but if I'm an AI focused investor, if I'm looking at my portfolio, and I have a lot of exposure to these chip companies, I'm feeling pretty good about this because 85% is also a lot more than zero, right? And so now we can kind of put this risk to bed. Yes, the these companies are ready to play ball with the administration. The administration is going to set the rules in a way we have not seen before. I mean, you're right. None of us have seen the government kind of, you know, get a piece of the pie in this explicit way before. But at the end of the day, the chip sales are going through. That's going to mean more revenue for these companies. I would walk away from this being very happy as a as an AI focused investor. John, let me get over to you at the top of the show. Brooke mentioned, uh, Apple coming back in large part because they, uh, Tim Cook has warmed up to the Trump administration, presenting, preventing a, uh, I don't know, some form of a gold trinket to the president last week. Is that one of the conditions to get involved with, with big cap tech here? At these valuations, these companies, if you want to pull the trigger on these even more, they have, these companies have to have a strong relationship with the Trump administration. It, it is very weird. Um, as a free market capitalist, I don't think I, uh, really understand it. Uh, but, uh, it does seem to be a condition of, uh, of doing business with the administration. So, um, you know, as, as the previous guest mentioned, it's, it's good for Nvidia, it's good for AMD. Um, you know, Nvidia had taken a large write-down, uh, on H20 sales when the ban was in effect. So, um, you know, it's, in general, it's good for the AI trade. I don't like, uh, what it means for free market capitalism. What does it, John? What does it mean? What does it mean? Uh, I mean, pay to play just isn't the norm, uh, in, in the US. So, uh, I think it means that companies are going to have to, uh, just try harder to, to work with the government and, um, I don't know, it's just a little unseemly to me. Related Videos Is it time to view bitcoin as a stock? Nvidia & AMD US–China deal, Intel CEO & Trump: What to know Chipmakers, Intel and Lithium: 3 Things Nvidia, AMD to Pay US 15% of China AI Chip Sales Revenue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 minutes ago
- Yahoo
Trump Pushes China to Quadruple U.S. Soybean Buys -- Markets React Ahead of Tariff Truce Deadline
Soybean futures posted their biggest intraday gain in four months after US President Donald Trump called on China to quickly quadruple its purchases of American soybeans, linking such a move to narrowing the trade gap between the two countries. The comments, made on Truth Social just one day before the current tariff truce is set to expire, came with a public thank-you to Chinese leader Xi Jinping, though no further detail was provided. The timing is notable US farmers are only weeks away from harvest, when fresh supply typically boosts export potential. While China bought more than $12 billion in US soybeans in 2024, government data show no bookings yet for the new season beginning in September, a sign that trade tensions remain an obstacle. Warning! GuruFocus has detected 5 Warning Signs with NVDA. The market reaction was swift. Chicago soybean futures jumped as much as 2.8% before easing to a 2.3% gain, with corn and wheat prices also edging higher. Analysts point out that this period often marks a shift in China's buying toward Northern Hemisphere origins, but the current pattern has leaned heavily toward Brazil, Argentina, and other South American suppliers. The US Department of Agriculture is expected to raise its domestic harvest outlook in an upcoming report, potentially adding to export competitiveness. Still, some market watchers caution that without progress in trade talks, China could meet its annual soybean needs entirely from South America, leaving US farmers sidelined. The tariff truce deadline on August 12 adds another layer to the story, with signals from Washington that an extension is possible. Broader US-China tensions remain in play from Beijing's defense of Russian oil imports against US tariff threats to state-linked criticism of Nvidia (NASDAQ:NVDA) chip performance. For now, Trump's remarks have injected a dose of optimism into agricultural markets, but whether this translates into sustained buying from China could depend on the trajectory of negotiations in the weeks ahead. This article first appeared on GuruFocus.
Yahoo
5 minutes ago
- Yahoo
Trump Announces Deployment of National Guard in D.C.
President Trump escalated his attacks on the nation's capital in recent days, saying Mayor Muriel Bowser hadn't done enough to control crime and homelessness. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
