The Issue

TikTok, which has 170 million American users and hosts over 7 million small businesses, is potentially facing a ban in the U.S. due to national security concerns. The main reasons cited by lawmakers include:

The U.S. government is considering forcing a sale to a U.S. company or banning the app if security concerns aren’t addressed. U.S. officials had said that under Chinese parent company ByteDance, there was a risk of Americans’ data being misused (Reuters). Here is a list of allegations made against TikTok and Bytedance (Reuters):

Timeline of events

August 2020

Trump signed an executive order giving ByteDance 90 days to sell TikTok but then blessed a deal structured as a partnership rather than a divestment that would have included both Oracle and Walmart.

April 2024

President Joe Biden signed the bill requiring TikTok to be sold or banned.

December 2024

President Elect, Trump, opposed the potential ban of TikTok in a court filing, arguing if the Supreme Court intervenes, he could secure a “political resolution” after his Jan. 20 inauguration that would keep the app in the U.S.

January 2025

Bloomberg reported that Chinese government officials have considered selling TikTok U.S. operations to Trump-allied billionaire Elon Musk if the Supreme Court does not stop the ban from going through on Jan. 19.

18-19 January 2025

Trump said he would “most likely” issue a 90-day extension on the TikTok ban

TikTok shut itself down in the United States at before 11 p.m. EST. A message said “you can’t use TikTok for now” due to a “law banning TikTok”. But the platform noted Trump “has indicated that he will work with us on a solution to reinstate TikTok once he takes office.”

12 hours later, TikTok service resumed. 

A message on the app read : “Welcome back! As a result of President Trump’s efforts, TikTok is back in the U.S.”

20 January 2025

TikTok CEO, Shou Zi Chew, attended Trump’s inauguration

21 January 2025

“I think the U.S. should be entitled to get half of TikTok …. But it’s worthless if I don’t, if the President doesn’t sign then it’s worthless. If the President does sign it’s worth maybe a trillion dollars. They really have nothing. It’s passed in Congress, it gives the President the right to make it make a deal or to close it and we have 90 days to make that decision. But I could see making a deal where the U.S. gets 50% of TikTok, polices it a little bit or a lot, depends on them.” Trump

WSJ, 21 Jan 2025

14 February 2025

TikTok is available to download again in the U.S. after three weeks

19 February 2025

“There’s a lot of people interested in TikTok and I think we have a chance of doing something good. We’ll be speaking to China also because they’re a party to it, obviously. But it would be great to keep TikTok alive, sell it to somebody who is going to do a great job with it.” – Trump

How TikTok might continue to operate in the U.S.

YouTube and TikTok influencer MrBeast, whose real name is Jimmy Donaldson, posted in January that he intended to buy the app. 

“Shark Tank” star, Kevin O’Leary, and former Los Angeles Dodgers owner, Frank McCourt, are also among a group of billionaires who have expressed interest.

Trump has also previously stated that Microsoft are interested in buying the app.

Elon Musk’s figure looms large. 

He is asserting increasing influence – most recently dominating Donald Trump’s first cabinet meeting at the White House. He said on Feb 25th 2025 “I’ve not put in a bid for TikTok and I don’t have any plans for what would I do if I had TikTok”. However, there is speculation he could be placed in charge.

Why TikTok might be banned in the U.S.

Republican senators Tom Cotton and Pete Ricketts said in a joint statement (Reuters): 

“Now that the law has taken effect, there is no legal basis for any kind of ‘extension’ of its effective date. For TikTok to come back online in the future, ByteDance must agree to a sale that satisfies the law’s qualified-divestiture requirements by severing all ties between TikTok and Communist China.” 

The law passed overwhelmingly by Congress gives the Trump administration sweeping authority to ban or seek the sale (of TikTok).

What is Trump’s endgame?

Trump has said he intends to place tariffs on China but has also indicated he hopes to have more direct contact with China’s leader (Reuters).

“I would like the United States to have a 50% ownership position in a joint venture” he wrote on his Truth Social platform (Reuters).

Trump saving TikTok represents a reversal in stance from his first term in office. In 2020, he aimed to ban the app over concerns the company was sharing Americans’ personal information with the Chinese government. More recently, Trump has said he has “a warm spot in (his) heart for TikTok” crediting the app with helping him win over young voters in the 2024 presidential election (Reuters).

What are Creators saying?

Creators are realising that it doesn’t make sense to be reliant on one platform, or be at the mercy of algorithmic changes. Many are diversifying their content strategy across multiple platforms and seeking ways to ‘own’ their audience.

What is our CEO saying?

We asked our CEO for his thoughts in our latest ‘Ask the CEO’ content series:

@thefifthagency 🚨 U.S. TikTok ban? What happens next? In our latest ‘Ask the CEO’ we asked Olly his thoughts and predictions on the looming TikTok ban in the U.S. set for 5th April. Olly touches on the following key points: Trump’s history with TikTok: first a ban, then a deal with Oracle – now, Trump sees its political power. Sell or shut down: The Supreme Court upheld the federal law, meaning ByteDance must divest TikTok’s US operations or face closure. Who’s buying? Billionaires and tech giants (Zuckerberg? Musk? AI startups?) are circling, but no one's openly admitting interest. More delays likely: Expect a structured deal with a US-backed investor and an extended deadline. Reels & Shorts on the rise: TikTok creators are diversifying fast.Is this really about data security, or who controls the data? And will Trump make ‘the deal’ or let it go? 🎥 Watch our video for Olly’s full breakdown. #TikTokBan #SocialMedia #CreatorEconomy ♬ original sound – The Fifth / Social Agency

Platform stats

Whilst Substack, Tumblr, Reddit and other platforms – including Chinese app Rednote –  offer video, they  do not have the existing scale of Instagram Reels or YouTube Shorts in the U.S. 

EMARKETER found that Instagram would be the single largest financial beneficiary of a TikTok ban, attracting an average of 22.4% of reallocated U.S. TikTok dollars. The below graphic showcases this further:

As we’ve already mentioned, nobody really knows the answer as to what the outcome will be. We’ll have to wait until 5 April to see what’s next for TikTok in the U.S….