A finalized TikTok deal was pulled Thursday after President Trump announced massive new tariffs against China, a source familiar with the negotiations told The Hill.  

Trump was poised to sign an executive order approving a deal that would have seen TikTok’s U.S. operations spun off into a new company, allowing the popular social media app to continue operating in the U.S. in the face of a law requiring its China-based parent company ByteDance to divest from the app or face a ban.

However, ByteDance representatives told the White House after Trump’s tariff announcement Wednesday that China would no longer approve the deal without negotiations on tariffs, according to the source.

It had been expected that China would approve a proposed deal that had been in the works for months until the tariffs were announced by Trump on Thursday.

The White House has not publicly commented on the apparent backing out.

While speaking to reporters on Air Force One on Thursday, Trump used China and TikTok as an example of using tariffs to negotiate.

“We have a situation with TikTok where China will probably say we’ll approve a deal but will you do something on the tariffs. The tariffs give us great power to negotiate. They always have. I’ve used them very well in the first administration. Now we’re taking it to a whole new level,” Trump said.

When asked if these were talks he was having with China he said, “No I’m just using that as an example.”

On Friday, Trump signed an executive order giving TikTok another 75-day extension, saying they had made “tremendous progress” but the deal required “more work to ensure all necessary approvals are signed.” 

Updated 5:40 p.m.