The Trump administration signed a deal earlier this week to finalise the sale of Tiktok, but the agreement fell apart after the massive tariffs announced by President Donald Trump came into effect on Wednesday, according to sources familiar with the matter.

After months of negotiations, including the ordinance, future buyer and vice president JD Vance, as of Wednesday, they saw Tiktock’s American business being spun into a new US-based entity owned by the majority of American investors, sources told the Daily Caller News Foundation. But by Friday, the contract fell apart as Tiktok had come to believe that Chinese regulators would not approve the contract in the absence of further trade negotiations related to the tariffs that the Trump administration slapped in China on Wednesday afternoon. (Related: Trump can beat roads for another 75 days as American companies compete for apps)

A familiar source said the firm deal was supported by existing investors, the federal government and the Buitedan itself.

Trump extended the window to make a 75-day transaction via Executive Action on Friday, one day before the first 75-day extension expired on Saturday. The popular social media app was to be banned in the United States under the conditions of the law signed by former President Joe Biden in 2024 unless it could be sold to non-Chinese buyers. There are concerns that the app actually has control or access to lawmakers motivated by lawmakers who are motivated by Chinese Communist Party (CCP) against their responsibility.

By Friday morning, it is unclear whether stakeholders can publicly announce that they have reached a temporary agreement due to the change in the Chinese government’s outlook, and the change has created uncertainty for Tiktok in its own deal with Chinese regulators, sources told DCNF. Ordinance officials on Thursday informed the White House that the Chinese government would not approve the agreement until Chinese officials can enter into trade talks with the United States.

Available evidence and expectations have shown that Chinese regulators will register for the interim agreement until the tariffs are snapped into place, sources told DCNF.

In a fragmented structure, according to sources, Baitedan still maintains ownership of the minority, and the first law that launched the saga can allow it as long as its interest is less than 20%. Trump was expected to formally approve the contract in an executive order that created a 120-day period to process funding, sources told DCNF.

All content created by the Daily Caller News Foundation is an independent, nonpartisan newswire service that is free to use for legitimate news publishers that can provide large audiences. All republished articles must include logos, reporter signatures and DCNF affiliation. For questions regarding our guidelines or partnerships with us, please contact licensing@dailycallernewsfoundation.org.