Trump: We have reached an agreement on TikTok

Trump: We have reached an agreement on TikTok

In a significant development, U.S. President Donald Trump announced Monday that a deal has been reached regarding TikTok, causing a ripple effect in the U.S. social media sector. The announcement, shared on Truth Social, stated: "The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly. A deal was also reached on a ’certain’ company that young people in our Country very much wanted to save. They will be very happy!"

Following the announcement, Snap Inc fell 1% and Meta dropped 0.5%, while Oracle Corporation rose 4%. Treasury Secretary Steven Mnuchin later confirmed that "commercial terms of TikTok deal have been agreed" and that trade talks with China will continue. Mnuchin also mentioned that a "wide range of issues with China" were discussed during the trade meeting, including cooperation on money laundering.

The development comes after previous reports indicated the U.S. government was prepared to allow a ban on TikTok if Chinese company ByteDance failed to reach a divestiture agreement. According to Mnuchin, President Trump and Chinese President Xi are scheduled to speak Friday to complete the TikTok deal.

Trump's hint at a TikTok deal was echoed in a separate report, which stated that the Republican president suggested the company is TikTok, the social media platform that US law requires to be sold or else cease operations. Trump also mentioned that he would be speaking on Friday with Chinese leader Xi Jinping.

The news has left the future of TikTok in the U.S. uncertain, as details of the deal remain scarce. However, the announcement has already had an impact on social media stocks, with Oracle Corporation seeing a notable rise in its share price. Investors will be closely watching the upcoming discussions between Trump and Xi Jinping to gain more clarity on the deal's specifics.