Washington: President-elect Donald Trump suggested on Saturday that he might grant TikTok a 90-day reprieve from a looming U.S. ban, as the popular app, which boasts 170 million American users, prepared for a possible shutdown on Sunday. Trump’s announcement has sparked hope among users and businesses heavily reliant on the platform.
“The 90-day extension is something that will be most likely done, because it’s appropriate,” Trump told NBC. “If I decide to do that, I’ll probably announce it on Monday.”
Donald Trump said he would 'most likely' give TikTok a 90-day reprieve from a potential ban after he takes office, as the app with 170 million American users buzzed with nervous anticipation ahead of a Sunday shutdown https://t.co/G3Vw4N2PEV pic.twitter.com/KSFSQhuTEv
— Reuters (@Reuters) January 18, 2025
Looming Ban Sparks Uncertainty
TikTok, owned by China-based ByteDance, faces a Sunday deadline to sever ties with its parent company or shut down its U.S. operations under a national security law upheld by the Supreme Court on Friday. The platform’s popularity among Americans, small businesses, and content creators has made its potential ban a hot-button issue.
The app urged the Biden administration to provide assurances to tech giants like Apple and Google that they won’t face enforcement actions when the ban takes effect. However, White House press secretary Karine Jean-Pierre dismissed TikTok’s plea, reiterating that it is now up to the incoming Trump administration to address the matter.
“We see no reason for TikTok or other companies to take actions in the next few days before the Trump administration takes office on Monday,” Jean-Pierre said.
Legal experts remain uncertain whether TikTok has met the criteria for a reprieve, which requires binding agreements for ByteDance to finalize a sale by mid-April. TikTok declined to comment on the White House’s statement.
The Chinese embassy in Washington criticized the U.S. for what it described as “unfair state power” targeting TikTok, with a spokesperson promising that “China will take all necessary measures to resolutely safeguard its legitimate rights and interests.”
Users Say Goodbye
TikTok users have taken to the app to express their farewells and share content in anticipation of the ban. Fitness influencer Britany Williams posted a video to her 64,000 followers, asking, “Does anyone know if the TikTok ban goes into effect on Sunday or if we have all of Sunday to like brain rot still? I need to plan accordingly.”
The Supreme Court upheld the ban on Friday, citing national security concerns. Without Trump’s decision to implement a 90-day delay, companies hosting or supporting TikTok could face significant legal and financial repercussions.
Experts note that Trump could direct the Justice Department to deprioritize enforcing the law, but questions remain whether such a move would adequately protect app store operators Apple and Google, as well as companies like Oracle, which provide essential services to TikTok.
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A Shift to Alternatives
The uncertainty has prompted many users, predominantly younger audiences, to explore alternatives such as RedNote, a China-based competitor. Meanwhile, U.S. rivals like Meta and Snap have seen their stock prices rise in anticipation of potential user and ad revenue gains.
Marketing agencies that rely on TikTok have scrambled to prepare contingency plans, with one executive describing it as a “hair-on-fire” moment after months of belief that a resolution would keep the app running.
While TikTok’s future remains uncertain, signs of a possible resolution have emerged. Trump has expressed interest in pursuing a “political resolution” and last month urged the Supreme Court to pause the implementation of the ban.
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Speculations Over TikTok’s Future
TikTok CEO Shou Zi Chew is reportedly planning to attend Trump’s inauguration and a rally on Sunday, according to a source familiar with the matter. Meanwhile, potential buyers, including former Los Angeles Dodgers owner Frank McCourt, have expressed interest in the platform, which analysts estimate could be worth up to $50 billion.
Media reports also suggest Beijing is exploring a sale of TikTok’s U.S. operations to billionaire Elon Musk, though the company has denied the claim. On Saturday, search engine startup Perplexity AI reportedly submitted a bid to merge with TikTok U.S., potentially creating a new entity by combining it with New Capital Partners.
Privately held ByteDance, TikTok’s parent company, is approximately 60% owned by institutional investors, including BlackRock and General Atlantic, while its founders and employees hold 20% each. ByteDance employs over 7,000 people in the U.S.
