Back to Insights

Trump Delays TikTok Ban Again — What’s Really Going On?

Shearing sheep
Shearing sheep
June 20, 2025
GoGPT Summarizes Articles
 
On June 19, President Trump once again signed a 90‑day enforcement delay of the 2024 bipartisan law requiring ByteDance to sell or shut down TikTok in the U.S. The new deadline is now September 17, 2025.
 
This marks Trump’s third such action since taking office in January—and it keeps TikTok fully operational for its 170 million U.S. users and 7.5 million businesses that rely on the platform. But it also raises a key question:
Is this a serious attempt to broker a deal, or just political maneuvering?
 
Timeline Recap
 
  • April 2024: President Joe Biden signed into law the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which mandated TikTok’s sale or shutdown, citing national security concerns over data collection and its ties to China.
  • January 19, 2025: On Biden’s final day in office, the TikTok ban officially took effect.
  • January 20, 2025: On his first day in office, Trump issued his first extension, pushing the deadline 75 days to April 5.
  • April 4, 2025: Trump issued a second extension, this time moving the deadline to June 19.
  • June 19, 2025: Trump issued a third extension, this time a full 90 days, resetting the deadline to September 17.
 
Legal Tensions
 
Under PAFACA, the president is allowed to issue a single 90-day enforcement delay if there’s a "binding legal agreement" for a sale. But Trump has now delayed enforcement three times, exceeding what the law explicitly permits.
 
The White House insists the DOJ and White House Counsel's Office believe the third delay is legally defensible—but they haven’t publicly explained how. Meanwhile, legal experts and lawmakers are skeptical. Senator Mark Warner has even suggested this may be an abuse of executive power.
 
So, is the delay legal? It’s unclear. But politically? It’s certainly strategic.
 
Why Is Trump Doing This?
 
Interestingly, in his first term, Trump was one of TikTok’s loudest critics, trying to force a sale and even attempting to ban the app. At the time, the concern was clear: Chinese control over U.S. user data and potential manipulation through the algorithm.
 
But today, Trump’s approach is noticeably different.
 
With 15 million followers of his own on TikTok, and younger voters increasingly active on the app, Trump has realized its value as a political tool. His campaign credits TikTok for helping him reconnect with younger demographics, and banning the app now would be politically risky.
 
Press Secretary Karoline Leavitt summed it up: “He wants to protect data and keep the app alive.”
A balancing act—but one that’s becoming increasingly drawn out.
 
The Oracle Angle
 
Trump continues to float the idea of Oracle as TikTok’s U.S. technology partner. It’s a politically convenient solution: a U.S.-friendly company led by Larry Ellison, a Trump ally, would take control of TikTok’s U.S. operations.
 
But no binding deal has taken shape, and discussions have since stalled.
 
A previous attempt at a sale involving Oracle and Walmart—where they would jointly acquire 20% of TikTok’s U.S. business—collapsed in April after China objected to Trump’s broader trade policies. Since then, discussions have stalled.
 
China has not approved any sale, and ByteDance has been unwilling to fully give up control of TikTok’s algorithm or U.S. user data—two core concerns for U.S. regulators.
 
What’s Next for TikTok?
 
Public support for banning TikTok has fallen from 50% in 2023 to just 33% in 2025. That shift makes it harder to pursue a hardline approach.
 
Trump’s team favors building on TikTok’s existing “Project Texas” infrastructure, which stores U.S. user data on Oracle servers. But without a complete divestment, the core national security issues remain.
 
It’s also worth remembering: the Supreme Court upheld the ban in January, just before Trump took office. The ruling acknowledged TikTok’s cultural significance but sided with Congress on the need for divestiture due to national security concerns.
 
If Trump keeps extending the deadline with no sale in sight, Congress or the courts could step in and force his hand.
 
Bottom Line
 
Trump’s repeated extensions suggest he’s betting on a deal rather than enforcing a ban—at least for now. But with the next deadline set for September 17, the clock is ticking.
 
Either ByteDance agrees to a deal that passes both U.S. and Chinese scrutiny, or this whole situation heads for a legal and political showdown. And if there’s a fourth extension? We may find out how far presidential discretion can really stretch.
 
#Market Spotlight: The Stories Driving Today’s Trading