TikTok Ownership Talks Resume as U.S. Eases China Tariffs

Overview

• U.S. announces tariff reduction on Chinese imports, easing trade tensions.
• Trade de-escalation may revive stalled TikTok ownership talks between the U.S. and China.
• Marketers see opportunity in reduced competition and ongoing algorithm advantages.
• House of Marketer‘s Insights on what brands should do.

The U.S. government has announced a tariff reduction on Chinese imports, pausing what had become an escalating trade standoff between the two global superpowers.

But this move is about more than economics. It may also revive stalled negotiations over TikTok’s future in the United States—a future that has hung in limbo since the start of 2025.

This latest diplomatic shift could be the breakthrough both sides need to finally move forward with a long-debated ownership deal, one that would keep TikTok live for its 170 million American users—and preserve a vital marketing and cultural engine in the process.

A Year of Legal Deadlines and Delays

To understand what this means, it is worth revisiting how we got here.

Back in January 2025, a Senate-approved law known as the “Protecting Americans from Foreign Adversary Controlled Applications Act” officially took effect. The bill mandates that TikTok, currently owned by Chinese tech firm ByteDance, must be sold to a U.S.-based entity to continue operating in the country.

TikTok did not meet that deadline.

However, the following day—on the heels of his second inauguration—President Donald Trump issued a 75-day hold on enforcement, effectively buying TikTok more time to negotiate. That pause was later extended through a second executive order, after tensions with China worsened over proposed tariffs.

The message from Beijing was clear: there would be no movement on TikTok while the U.S. applied economic pressure.

But with this week’s tariff reduction announcement, the climate has shifted. Diplomacy appears to be back on the table. And that could mean a renewed pathway to a deal that satisfies both U.S. national security concerns and China’s regulatory sensitivities.

What Might a TikTok Deal Look Like?

While no official deal has been announced, industry sources point to a likely framework involving Oracle as a key U.S. partner. This structure would aim to meet the stringent requirements of the new legislation, including:

• Capping foreign ownership of TikTok at 20% or less
• Prohibiting any foreign entity from controlling the platform’s algorithms
• Enforcing data restrictions to protect U.S. user information

Arranging such a deal is complex. ByteDance would need to relinquish far more control than it prefers, and the Chinese government has been hesitant to approve any structure that could be perceived as forced divestment.

Still, Trump signaled in March that a deal could be finalised “within a week”. While that timeline came and went without action, it suggests that the basic outlines of an agreement may already be in place—simply waiting for the right moment.

With trade tensions now easing, that moment may finally have arrived.

The Future of TikTok?

For many creators, TikTok is a career, a community, and a livelihood. The threat of a ban has created deep anxiety across the creator economy, especially for those who built their audiences and businesses on TikTok’s unique algorithm and culture.

If TikTok were banned outright in the U.S., the app would not disappear overnight. But it would gradually lose functionality, starting with app store removals, followed by the shutdown of updates and monetisation features. It would mark a slow erosion of a vibrant digital ecosystem that, for some, has been years in the making.

From a business perspective, TikTok remains one of the most influential and efficient marketing channels in the world. For brands, that makes the platform too important to ignore—even in the face of regulatory risk.

Brands Should Turn Uncertainty Into Strategy

While the outcome is still unknown, this moment is far from a dead end. In fact, many marketers see it as a strategic inflection point.

If a ban happens, competition on TikTok will likely drop, presenting a rare window for first-mover advantage. The algorithm rewards consistency and spend, so those who stay active could benefit from increased visibility and reduced noise.

On the flip side, if a deal is struck, brands that stayed invested will have maintained momentum—while others may be scrambling to return.

The potential TikTok ban in the U.S. may seem daunting, but it’s also a chance to innovate and grow. HoM is fully equipped to help brands navigate this evolving landscape, ensuring continued success and growth across platforms.

Want to discuss your brand strategy post TikTok?

At House of Marketers, we help businesses craft impactful influencer marketing campaigns across TikTok, Instagram, and Facebook. Contact House of Marketers today and future-proof your marketing strategy today!