05:00 AM EDT, 04/07/2025 (MT Newswires) -- A deal to spin off the US assets of TikTok was paused following an indication from China that it would not approve the transaction after US President Donald Trump's latest tariffs, Reuters reported Saturday, citing two sources familiar with the matter.

The deal would have spun off the short video app's US operations into a new, US-based company. It would be majority-owned and operated by US investors, the report said, adding that China-based ByteDance would hold less than 20% of TikTok, according to the report.

The deal had received approvals from existing and new investors, ByteDance and the US government, Reuters reported, citing one of the sources.

"(We are) still in talks with the US government, but no agreement has been reached, and the two sides still have differences on many key issues," ByteDance reportedly said early Saturday in a statement on its official account on Chinese social media platform WeChat.

ByteDance and TikTok did not immediately respond to MT Newswires' requests for comment.

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