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Home Business & Finance Economic Policies

Deal maker, not disruptor: What Trump’s TikTok stance reveals todayheadline

January 18, 2025
in Economic Policies
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Deal maker, not disruptor: What Trump's TikTok stance reveals
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The stance of incoming US President Donald Trump on TikTok, the social media app owned by Chinese company ByteDance, can give clues to his foreign policy which at this stage is propped up by threats of high tariffs against other countries.The fate of TikTok hangs in balance in the US. TikTok plans to shut US operations of its social media app used by 170 million Americans on Sunday, when a federal ban is set to take effect. “TikTok should remain available to Americans, but simply under American ownership or other ownership that addresses the national security concerns identified by Congress in developing this law,” the White House said in a statement. “Given the sheer fact of timing, this Administration recognizes that actions to implement the law simply must fall to the next Administration, which takes office on Monday.”

The potential shutdown would impact all US users, differing from the mandate of the law, which would only prohibit new TikTok downloads on Apple and Google app stores while allowing existing users to continue using the app for some time. Reportedly, users attempting to open the app will be greeted with a pop-up message directing them to a website containing information about the ban. Additionally, TikTok plans to provide users with the option to download their personal data, allowing them to keep a record of their information. TikTok’s proactive approach aims to address the federal ban concerns and ensure users are informed about the potential shutdown.

Congress last year, in a law signed by President Joe Biden, required that TikTok’s China-based parent ByteDance divest the company by January 19, a day before the presidential inauguration. Last week, the Supreme Court heard oral arguments in a legal challenge to the statute brought by TikTok, ByteDance, and users of the app. The Justices seemed likely to uphold the law, which requires ByteDance to divest TikTok on national security grounds or face a ban in one of its biggest markets.

Last year, the US Congress enacted legislation compelling ByteDance to choose between divesting TikTok or ceasing its operations. American authorities have claimed that TikTok enables Beijing’s surveillance activities through data collection from its users whilst serving as a channel for propaganda dissemination.


Will it get last-minute reprieve?
President-elect Donald Trump, who will be sworn in on January 20, is reportedly considering an executive order to delay the TikTok ban, providing its China-based parent Bytedance some time to negotiate a sale or find an alternative solution for the app. According to a report by The Washington Post, Trump is considering an executive order that would suspend enforcement of the TikTok ban-or-sale law for 60 to 90 days once he takes office. This effort, however, is legally questionable, the report added.

“Trump has been mulling ways to save the day for the wildly popular video app, talking through unconventional dealmaking and legal maneuvers such as an executive order that would unravel the law passed by Congress last year with bipartisan support,” the report cited two people familiar with the deliberations as saying.

Will Trump strike a deal with the Chinese company?

Trump has reversed his position on TikTok, having tried to ban it during his first term in office over national security concerns. He joined TikTok during his 2024 presidential campaign and his team used it to connect with younger voters, especially male voters, by pushing content that was often macho and aimed at going viral. He pledged to “save TikTok” during the campaign and has credited the platform with helping him win more youth votes.

Trump said Friday that the Supreme Court’s decision to uphold a congressional ban on TikTok should be respected but he “must have time” to decide on whether to enforce the ruling. “The Supreme Court decision was expected, and everyone must respect it. My decision on TikTok will be made in the not too distant future, but I must have time to review the situation. Stay tuned!” Trump wrote on his social media platform Truth Social.

Interestingly, TikTok CEO Shou Zi Chew has been invited to Trump’s inauguration on Monday. According to a New York Times report, Chew has been invited to sit in a position of honor on the dais, which is typically reserved for former presidents, family members and other important guests. Among prominent tech leaders that are reported to attend the inauguration are Elon Musk, Jeff Bezos, and other influential tech executives. This means that Chew will join these tech leaders on the dais.

Mike Waltz, nominated to be Donald Trump’s national security adviser, has said that the president-elect is actively exploring options to preserve TikTok, despite the ongoing legal challenges surrounding the platform.

Waltz defended TikTok’s value, noting that it had become a powerful platform for engaging millions of Americans. He pointed out that TikTok played a significant role in Trump’s 2024 campaign, especially in connecting with younger voters. “TikTok is a great platform that many Americans use and has been great for his campaign,” he remarked. In response to the legal challenge, Waltz assured that Trump’s administration would protect users’ data, while also exploring avenues to strike a deal to preserve the app in the US.

Calling Trump a “deal maker”, Waltz said, “I don’t want to get ahead of our executive orders, but we’re going to create this space to put that deal in place,” he said.

Trump could prove to be more of a deal maker than a disruptor after returning to White House, given his propensity to change stance on big issues. After pledging to impose 60% duties on goods imported from China, ratcheting up tensions between the world’s two biggest economies, Trump had a phone conversation on Friday with Chinese President Xi Jinping in which he discussed issues including TikTok, trade and Taiwan.

“The call was a very good one for both China and the U.S.A. It is my expectation that we will solve many problems together, and starting immediately. We discussed balancing Trade, Fentanyl, TikTok, and many other subjects,” Trump wrote in a post on his social media platform. “President Xi and I will do everything possible to make the World more peaceful and safe!”

Many believe Trump’s threats of steep tariffs are just a ploy to gain bargaining power over other countries and force them into deals he seeks.

(With inputs from agencies and TOI)

Tags: DealdisruptorDonald TrumpElon MuskJoe BidenmakerrevealssecuritySocial MediastanceTikToktodayheadlineTrumpsTruth Socialwashington postWhite HouseXi Jinping
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