WASHINGTON- In a move stirring both relief and controversy, President Donald Trump signed an executive order on June 19, 2025, granting TikTok a third extension to comply with U.S. law mandating the app’s divestment from its Chinese parent company, ByteDance. The new deadline extends TikTok’s operational window in the United States until September 17, 2025.
The original requirement, part of the Protecting Americans from Foreign Adversary Controlled Applications Act (PASFAA) passed in 2024, demanded that ByteDance either sell TikTok’s U.S. operations or face a complete ban. The law permitted only a single 90-day extension, which had already been used earlier this year. Trump’s new order marks the third extension, raising questions about the legality of the move.
The White House defended the decision, stating that the extension is necessary to complete ongoing negotiations with potential American buyers. The administration also emphasized the importance of maintaining access for TikTok’s estimated 170 million American users and the 7.5 million businesses that use the platform.
ByteDance, through TikTok, expressed gratitude for the administration’s continued engagement and reaffirmed its commitment to a secure resolution. However, the legal community is divided. Some experts believe the extension exceeds Trump’s authority under PASFAA and anticipate potential legal challenges. If ByteDance fails to finalize a sale or if U.S. authorities detect any unauthorized data access from China, lawsuits could quickly follow.
Technology rivals such as Meta, Snap, and YouTube are closely monitoring the situation. The uncertainty has opened doors for competitors to capture more advertising revenue and user attention. Analysts believe the indecision could shift digital ad dynamics in the coming months.
Lawmakers have also responded with mixed reactions. Some Republican senators voiced concerns over Trump's repeated delays, while Democrats, including Senator Mark Warner, accused the former president of ignoring the spirit of the law. Public opinion on the matter has softened since 2023, with recent surveys showing only about one-third of Americans now support a ban on TikTok.
Meanwhile, negotiations over a potential sale continue. A previous plan involving Oracle fell through due to rising tensions between the U.S. and China. The current sticking points include the transfer of TikTok’s proprietary recommendation algorithm and obtaining approval from Beijing for any sale.
Unless a breakthrough is achieved before September 17, the U.S. government may be forced to proceed with enforcement actions. These could include removing TikTok from app stores or imposing penalties on Apple and Google for facilitating access to a banned app.
As the deadline approaches, industry watchers, legal analysts, and global stakeholders will be paying close attention to the final outcome of what has become one of the most high-profile tech and geopolitical standoffs in recent years.