The US president announced that the deal, along with Oracle and Walmart, will “have nothing to do with China”. Speaking to reporters outside the White House before he departed for North Carolina, Mr Trump said the deal will be “totally secure”.
US officials have reportedly expressed their concerns about the possibility of China accessing users’ data information.
But Mr Trump insisted that the new deal will provide Americans with security.
Approximately a 100 million US citizens use the Chinese-owned social media app TikTok.
Mr Trump told reported: “The security will be 100 percent.
“Conceptually it’s great for America.”
He added that the security will be “very powerful”.
The president promised that the deal will bring “billions of dollars” to America through tax and will provide the country with thousands of jobs.
He said the app will hire at least 25 thousand people if the deal follows through.
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He added that it will be totally controlled by Oracle and Walmart.
The president announced that the company will make a $5billion (£4.6billion) donation to education in the state.
Speaking outside the White House, he said: “They’re going to be setting up a very large fund.
“That’s their contribution that I’ve been asking for.”
On Saturday, the US Commerce Department announced that there will be a one-week delay to their previously announced TikTok US app store ban.
The department had ordered Apple Inc AAPL.O and Alphabet Inc’s Google to remove the TikTok app for download on Friday.
But a statement said in “light of recent positive developments” and at Mr Trump’s direction, the order will be delayed until 27 September.
The delay is said to give TikTok, Oracle and Walmart time to finalised the new deal and create the new company TikTok Global.
Mr Trump said the new company “will have nothing to do with outside land [and] any outside country”.
He claimed the deal will be “fantastic” and will make “everybody happy”.