TikTok and Trump: what lies ahead for the platform?

American users were momentarily deprived access to TikTok after the US Supreme Court upheld a ban on the social media app. Because the app is owned by Chinese firm ByteDance, concerns abounded that content on the platform could be exploited by the Chinese government and allow them to gain access to sensitive data. The legislation was signed into law in April 2024, by Joe Biden but was not scheduled to go live until the day before Donald Trump’s inauguration this year.

The financial stakes of a TikTok ban were high for both ByteDance itself and the US. The former was at risk of being heavily affected since the US is TikTok’s most profitable market. Through ads, and taking percentages of sales on TikTok Shop, the platform offered numerous revenue sources for the company which were likely to be lost with the ban. Aside from its revenue, TikTok has a drastic financial impact on the countries in which it exists by offering creators full-time incomes and small businesses a larger market. Aside from these direct impacts, there are also indirect benefits from increased website and retail traffic, brand sponsorships, and other financial deals. This meant that American consumers reaped $73 billion of value from TikTok in 2023.

Leading up to 19 January, the date the platform was set to be banned, there was lots of concern around how creators and businesses would be impacted if their main income stream was cut off. As early as 18 January, US users were hit with a message on TikTok saying it would be unavailable in their country. An official statement was released referencing the 170 million Americans and 7 million small businesses on the platform and explicitly mentioning cooperation with Trump. Many users noted the mention of the President, believing it was both a play to his ego and also a reminder that he would be at fault if the platform was not able to be reinstated.

More recently, [Donald Trump] has suggested a US-owned sovereign wealth fund could purchase the platform

Fortunately for both US users and TikTok, the ban lasted for less than 24 hours, with a 75-day extension provided to ByteDance. This extension was introduced with the intention that the parent company would sell to a non-Chinese company within the extension period, offering an opportunity for the platform to continue to be available across the US. Despite the ban’s overturning, TikTok is still unavailable for download or update on app stores, including Apple, which stated that it is “obligated to follow the laws in the jurisdictions where it operates,” and that TikTok would “no longer be available”. Furthermore, Trump’s executive order could face a legal challenge. He may not barred from overturning the federal law if there has not been significant progress towards a deal.

There is still uncertainty about the future, with a long-term ban on the platform being a possibility. After issuing his executive order, Trump noted he “would like the United States to have a 50% ownership position in a joint venture,” but no further details have been released on how this deal would occur, and ByteDance has not offered an opinion on the sale. More recently, he has suggested a US-owned sovereign wealth fund could purchase the platform. Creators and business owners are still concerned for the future of their livelihoods, and despite Trump’s attempts to drive confidence, there is no clear plan for the future of TikTok. Will these groups that rely on the platform decide to turn to another, or will they place their lives in Trump’s hands once again?