TikTok Braces for Possible US Shutdown as Federal Ban Looms
TikTok is expected to shut down in the United States on Sunday unless President Joe Biden’s administration provides assurances that companies like Apple and Google won’t face enforcement actions when the ban takes effect. The ban was signed by Biden in April and marks the first U.S. shutdown of a major social media app.
TikTok, owned by Chinese-based ByteDance, has until Sunday to cut ties with its China-based parent company or shut down its US operation to resolve concerns over national security. With 170 million domestic users and an estimated $20 billion in revenue for 2025, the platform is a major source of concern.
Uncertainty over the app’s future has led to a mass exodus to alternatives such as RedNote and an increase in share prices for rival apps like Meta and Snap. Marketing firms reliant on TikTok are racing to prepare contingency plans.
Meanwhile, the Trump administration has taken a more antagonistic stance towards TikTok. In a statement, press secretary Karine Jean-Pierre said, “We see no reason for TikTok or other companies to take action in the next few days before the Trump administration takes office on Monday. Actions to implement this law will fall to the next administration.”
A deal could potentially be struck once the Trump administration takes office. Incoming US President Donald Trump has urged a “political resolution” of the issue, and could be considering an executive order that would suspend enforcement of the sale-or-ban law for 60 to 90 days. The CEO of TikTok plans to attend Trump’s inauguration and has met with suitors who have expressed interest in purchasing the platform.