No TikTok Ban? Trump Signals Breakthrough Ahead of Deadline

US President Donald Trump on Monday suggested that an agreement has been struck allowing TikTok to continue operating in the American market, just days before the September 17 deadline set by his administration for the app to comply with ownership rules.

In a post on Truth Social, Trump wrote: “A deal was also reached on a ‘certain’ company that young people in our country very much wanted to save.” He did not name TikTok or disclose details, but confirmed he will speak with Chinese President Xi Jinping on Friday.

The remarks came as US and Chinese negotiators met in Madrid for the latest round of trade talks. While Washington has not provided specifics, the agenda included TikTok’s future—critical given the US is its largest market.

What the US Demanded
Washington has been pressing TikTok’s parent company ByteDance to divest a majority stake to US ownership. Officials had warned that without such a deal, TikTok could face a nationwide ban. In return, China reportedly sought relief from tariffs and restrictions on technology access.

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer told reporters earlier that any extension of the divestment deadline would depend on progress in Madrid.

Why TikTok Is a Sticking Point
Analysts say Beijing fears that selling TikTok would set a precedent for forced sales of other Chinese firms in Western markets. For Washington, meanwhile, banning TikTok could alienate millions of young voters ahead of the 2026 elections.

The Madrid talks, the fourth round in four months, come as Washington urges allies to impose tariffs on China over its purchases of Russian oil. India too has faced similar tariffs, which has pushed New Delhi and Beijing into a rare moment of alignment.

China Pushes Back
Asked about Trump’s remarks, Chinese Foreign Ministry spokesperson Lin Jian said Beijing had “no new information” and reiterated its position on TikTok. In a separate move widely seen as retaliatory, China’s market regulator announced a preliminary finding that US chipmaker Nvidia had violated anti-monopoly laws.