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U.S. President-elect Donald Trump announced he would "most likely" grant TikTok a 90-day reprieve from a potential U.S. ban after taking office on Monday. This comes as the app, with 170 million American users, faces a shutdown deadline on Sunday. Trump stated he might formalize the extension on Monday, citing appropriateness.
The Chinese-owned app, operated by ByteDance, must cut ties with its parent company or face a ban, as mandated by a recent Supreme Court ruling upholding national security concerns. TikTok, which has significantly shaped online culture and supported small businesses, warned of a shutdown unless the Biden administration reassures companies like Apple and Google they won’t face penalties for hosting the app.
The White House dismissed TikTok's Friday statement as a publicity stunt, reiterating that the matter falls to Trump’s incoming administration. Press Secretary Karine Jean-Pierre emphasized no immediate actions were required from TikTok before Monday.
The Supreme Court upheld the ban, but a 90-day extension hinges on binding agreements for ByteDance to divest TikTok by April. Experts noted Trump could deprioritize enforcement through the Justice Department, though legal protection for companies like Oracle, Apple, and Google remains uncertain.
As uncertainty looms, users are exploring alternatives, including apps like RedNote. Rivals Meta and Snap have seen stock increases, anticipating a user influx. Marketing firms heavily reliant on TikTok have scrambled for contingency plans.
TikTok’s CEO Shou Zi Chew plans to attend Trump’s inauguration, fueling speculation about a potential resolution. Meanwhile, suitors like Elon Musk and institutional investors continue to express interest in acquiring TikTok's U.S. operations, valued at up to $50 billion.
TikTok’s future remains in flux as negotiations and legal hurdles unfold, leaving its massive user base bracing for possible disruption.
