On January 19th, 2025, TikTok experienced a temporary blackout for US users, just hours before a sweeping federal ban on the Chinese-owned short-video app was set to take effect. While the app has been restored now, the drama is far from over. President-elect Donald Trump has intervened, proposing a deal to delay the ban and create a US-owned joint venture with a 50% stake.
Trump posted on Truth Social that upon taking office on Monday, he would sign an executive order granting the Chinese-owned video app more time to secure a buyer before a full shutdown, and suggested that either the U.S. government or an American company take a 50% ownership stake.
“By doing this, we save TikTok, keep it in good hands, and allow it to stay up,” Trump said. “Without U.S. approval, there is no TikTok. With our approval, it’s worth hundreds of billions of dollars—maybe even trillions.”
The ban followed a law passed by Congress in April, which required TikTok’s parent company, ByteDance, to either sell the app to a non-Chinese owner or face a complete shutdown. The Chinese company chose the latter, arguing that divestment of TikTok was “simply not possible” for reasons that were commercial, technological, and legal.
From Saturday night until Sunday afternoon, a notification on the app read: “A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned.”
Why Did The US Ban TikTok?
TikTok stopped working for 170 million U.S. users late Saturday.
The primary reason behind the ban lies in concerns over national security. US lawmakers and intelligence officials have long argued that TikTok poses a unique threat because of its ties to China. Although TikTok claims to store user data on servers located outside China, critics worry that the Chinese government could potentially access this data under China’s strict data privacy laws.
The app’s algorithm, which tailors content based on user interactions, has also raised red flags. Some experts argue that TikTok’s influence over the content its users see could potentially be manipulated by the Chinese government for geopolitical purposes. This concern is heightened by the fact that TikTok’s parent company, ByteDance, is based in Beijing, where the government has significant control over technology companies.
Despite these national security concerns, TikTok has argued that it has been fully compliant with US data privacy regulations. The company has even gone so far as to set up “Project Texas,” an initiative to store American user data in the US under the oversight of US-based partners. However, these assurances were not enough to sway Congress, and with the Supreme Court ruling, the ban will now go into effect.
The Long Road to Ban
TikTok’s ban in the US has been five years in the making.
The saga began in mid-2020 when then-President Donald Trump issued an executive order calling for the app’s sale or removal due to national security concerns. Trump’s administration argued that TikTok, owned by the Chinese company ByteDance, could be used by the Chinese government to harvest American users’ data. Despite the executive order, Trump’s efforts to force a sale of the app fell short, and no immediate action was taken.
Meanwhile, lawmakers in Congress began drafting legislation targeting TikTok, citing concerns over data privacy, user security, and potential Chinese influence on American citizens. Several bills were introduced, but only one successfully passed: Protecting Americans from Foreign Adversary Controlled Applications Act, which mandated that ByteDance either divest from TikTok or face a shutdown.
The ban was not without opposition. TikTok fought the law in court, arguing that it violated free speech protections guaranteed by the First Amendment. However, the legal battle seemed to be an uphill climb.
Trump’s Role In The Lift Of The TikTok Ban
In an unexpected twist, Trump showed support for TikTok, a platform he initially vilified.
During his 2024 presidential campaign, Trump became active on TikTok, using the platform to engage with a large audience, particularly younger voters. This newfound affinity may explain his more favorable stance on the app, as he is reportedly considering delaying the enforcement of the ban with a 90-day extension.
TikTok’s CEO, Shou Zi Chew, released a video thanking Trump for his efforts to keep the app operational in the U.S. He is expected to attend Trump’s inauguration in person.
Following Trump’s message on Sunday, the company issued a statement confirming it was “in the process of restoring service.” The statement read: “We thank President Trump for providing the necessary clarity and assurance to our service providers, ensuring they will face no penalties for offering TikTok to over 170 million Americans and supporting over 7 million small businesses. This is a strong stance for the First Amendment and against arbitrary censorship. We look forward to working with President Trump on a long-term solution that keeps TikTok in the United States.”
What’s Next for TikTok?
With TikTok temporarily removed from app stores, the question remains: what’s next for the app? Without the ability to attract new downloads or provide updates, TikTok’s functionality will likely deteriorate over time.
Potential buyers, including Perplexity AI and “The People’s Bid for TikTok” led by Frank McCourt and Kevin O’Leary, are vying for the platform, with valuations exceeding $50 billion. Congress and courts are still debating whether TikTok can operate safely under its current Chinese ownership.
The app will also become increasingly vulnerable to cyber-attacks without regular updates and maintenance.
While rivals like Instagram Reels and YouTube Shorts will likely see a post-ban surge in users, many former TikTok fans are defecting to other platforms. The most notable among these is Xiaohongshu (RedNote), a Chinese video-sharing app that has been quietly gaining ground among former TikTok users. RedNote appears not to be ready for former TikTok users as much of the interface is in Chinese.
As for the future of TikTok in the US, the situation remains fluid.
What This Means For Advertisers
For now, TikTok’s future in the US hangs in the balance. Whether through legal challenges, presidential intervention, or a potential sale, the app’s fate is far from certain.
What’s clear, however, is that a potential shutdown could have a massive impact on the brands that reach millions of users through the platform.
While the ban may be temporary, it’s important for advertisers to quickly pivot and adjust their strategies. Take this time to back up all your TikTok content data. Analyse past successes, identify key insights, and use the content elsewhere if possible.
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