On June 17, 2025, President Trump signed a new executive order delaying the enforcement of the TikTok divestiture deadline under the “Protecting Americans from Foreign Adversary Controlled Applications Act” (PAFACA). The previously scheduled June 19 cutoff has been pushed back by 90 days, setting a new deadline of September 17, 2025. This marks the third such extension and opens another chapter in the high-stakes negotiations over TikTok’s future in the U.S.

I. Background Recap

1. Passage of PAFACA
   In March 2024, Congress enacted PAFACA to address national security concerns posed by apps owned or influenced by foreign adversaries. ByteDance’s TikTok was identified as subject to a forced divestiture or ban if no U.S. buyer was secured within 180 days.

2. Original and Subsequent Deadlines

   • Original Deadline: January 19, 2025 – ByteDance required to complete a sale or face a ban on new downloads and updates.

   • First Extension (Jan 20, 2025): Trump signed an executive order granting a 75-day reprieve, moving the deadline to April 5, 2025.

   • Second Extension (Apr 4, 2025): Another 75-day delay pushed the deadline to June 19, 2025.

II. Third Extension: 90-Day Delay

• Legal Authority: Under Section 4872(d) of PAFACA, the President may grant a single additional extension of up to 90 days if a viable divestiture path has been identified, substantial progress has been made, and a legally binding sale agreement is in negotiation.

• New Deadline: September 17, 2025.

• Stated Rationale: The administration and potential buyers—such as Oracle, Amazon, or AppLovin—need more time to complete due diligence, finalize valuation, and agree on data-security and governance structures to protect U.S. national security interests.

III. Reactions & Key Considerations

• Congressional Sentiment
  While many lawmakers across both parties continue to favor a complete severance from Chinese ownership, some express concern that an outright ban would unfairly penalize tens of millions of American users.

• Prospective Buyers’ Negotiations
  Bidders must commit to establishing a fully independent “TikTok America” entity, with strict oversight, data-storage safeguards, and board-level controls. Key sticking points include purchase price, intellectual-property rights, and access to user data.

• ByteDance’s Position
  ByteDance has publicly affirmed its willingness to cooperate with the divestiture process, pledging enhanced transparency, audits, and strengthened data-protection measures to satisfy U.S. regulators.

IV. Impact & Outlook

1. U.S. User Continuity
   With this extension, TikTok will remain available for new downloads and updates in the U.S., avoiding the disruption of an abrupt removal from app stores.

2. Policy Signal

   • Tech Decoupling Pressure: The delay underscores the administration’s tough stance on Chinese tech but also its interest in facilitating an orderly transition rather than an immediate ban.

   • M&A and Data Governance Precedent: A successful divestiture deal could set a template for future acquisitions of foreign-controlled platforms deemed security risks.

3. Watch-Points for the Next 90 Days

   • Sale Agreement Execution: Will a definitive purchase deal be signed before September 17?

   • Regulatory Approval: Can the proposed structure satisfy the National Security Council and Capitol Hill skeptics?

   • Global Ramifications: The outcome will inform other governments’ approaches to managing foreign-controlled digital platforms.

Conclusion
The third postponement of TikTok’s forced divestiture deadline buys negotiators more time but leaves the ultimate outcome—whether a U.S. buyer emerges with robust data-security commitments—uncertain. Over the next three months, the world will watch to see if a deal materializes or if a ban becomes inevitable. Stay tuned to Political & Economic Insights for ongoing analysis of this pivotal tech-security saga.