He told reporters at the White House that he supported a deal with Oracle and Walmart that would create a new company to oversee TikTok’s U.S. operations.
Mr Trump said the new company would be “totally controlled by Oracle and Walmart”.
People in the United States were ready to be banned of downloading the video-sharing app – as well as another Chinese app, WeChat – on Sunday, following White House concerns about the security of user data.
An earlier statement from the US Department of Commerce read, “The Chinese Communist Party (CCP) has demonstrated the means and motives to use these apps to threaten US national security, foreign policy, and economy. ”
He added that the apps posed “unacceptable risks” to national security.
But the president has now said he approves the deal “in concept” and that the security will be “100%”, adding: “I have given my blessing to the deal”.
Reuters news agency reported on Thursday that the new company, called TikTok Global, would have a majority of US directors, a US CEO and a security expert on board.
It is expected to create at least 25,000 new jobs and will be based in Texas, the president said.
Oracle and Walmart are expected to take significant stakes, and ByteDance – which owns TikTok – has agreed to significant security measures, with Oracle hosting all data and having the right to inspect the application’s source code. .
However, China has yet to approve the deal.
TikTok said in a statement, “We are pleased that the proposal from TikTok, Oracle and Walmart will resolve the security concerns of the US administration and resolve issues regarding the future of TikTok in the United States. ”
He added, “Our team works tirelessly to provide a safe and inclusive platform and we are delighted to be able to continue to serve our incredibly diverse and creative community. ”
Mr Trump said: “We will see if it all goes or not. ”
It’s not immediately clear whether the Commerce Department will back down on plans to force Google and Apple to stop offering TikTok on their U.S. app stores on Sunday.