On Monday, President Donald Trump signed an executive order extending TikTok’s operations for 75 days, offering relief to its users even as national security concerns linger.
TikTok’s parent company, ByteDance, headquartered in China, had previously been required to find a U.S. buyer or face a ban by January 19. Trump’s order could allow ByteDance additional time to negotiate a sale. “I guess I have a warm spot for TikTok,” Trump remarked.
Earlier in the day, TikTok CEO Shou Zi Chew attended Trump’s inauguration, sitting among prominent American tech executives.
The president, who has garnered nearly 15 million followers on TikTok since joining last year, credited the platform for bolstering his appeal among younger voters. However, the app’s 170 million U.S. users faced a 12-hour blackout between Saturday night and Sunday morning.
The outage occurred before Congress-approved and Supreme Court-upheld bans took effect Sunday. TikTok resumed services after Trump announced plans to delay the ban on Monday, though Google and Apple have yet to reinstate TikTok in their app stores.
The delay raises questions about how Trump will navigate the web of legal, regulatory, financial, and geopolitical issues surrounding TikTok. Business leaders, lawmakers, legal experts, and influencers reliant on the platform for income are closely monitoring the situation.
The Origin of the TikTok Ban
TikTok’s popularity stems from its innovative algorithm, which curates video recommendations based on user behavior. However, concerns over its potential use by Beijing to spy on Americans date back to Trump’s first term.
In 2020, Trump issued executive orders banning transactions with ByteDance and the Chinese messaging app WeChat, though courts blocked these measures. Nearly a year ago, Congress passed legislation citing national security risks to mandate TikTok’s divestment unless ByteDance sold the platform to an approved buyer.
The law, which took effect Sunday, authorizes fines of up to $5,000 per U.S. user against companies like Apple, Google, or internet hosts such as Oracle if they continue distributing TikTok.
On Sunday, Trump requested that TikTok’s U.S. service providers maintain operations while he finalized an executive order pausing the ban.
Trump assured stakeholders via Truth Social that his order would exempt companies from liability for assisting TikTok before the order’s issuance.
Although the law allows a 90-day extension if progress toward a sale is demonstrated before the deadline, its retroactive application remains unclear, according to Sarah Kreps, director of Cornell University’s Tech Policy Institute. “Executive orders cannot override existing laws,” Kreps stated, questioning Trump’s authority to delay the ban.
The Impact of a TikTok Sale
Kreps expressed skepticism over whether a sale is imminent, given the absence of a named buyer. However, University of Minnesota law professor Alan Rozenshtein suggested the president might interpret the law to define what qualifies as a “sufficient divestiture.”
ByteDance had long resisted selling TikTok, but Beijing signaled a potential shift in stance on Monday. China’s vice president held discussions with U.S. Vice President JD Vance and Tesla CEO Elon Musk.
Additionally, Chinese Foreign Ministry spokeswoman Mao Ning commented that business decisions, including acquisitions, should adhere to market principles while observing Chinese laws.
Previously, Beijing viewed TikTok as emblematic of its defiance against perceived “U.S. robbery.” However, the topic reportedly surfaced during a call between Chinese President Xi Jinping and Trump on Friday.
Trump also suggested that the U.S. government broker a deal for 50% control of TikTok. “The U.S. should be entitled to half of TikTok, and that could be worth $500 billion,” Trump said, emphasizing its value with a U.S. buyer.
Enforcement of the Ban
The Justice Department typically enforces federal laws, but Trump’s executive order instructs the attorney general to halt enforcement for 75 days. This pause aims to allow his administration to find a solution that balances national security with uninterrupted service for millions of Americans.
The move may face legal challenges but could provide TikTok with more time. Trump’s stance has created friction with legislators who supported the law. House Speaker Mike Johnson described ByteDance’s ownership as “very dangerous” and emphasized the importance of enforcing the law.
Kreps noted that if the ban doesn’t hold, legislators may appear ineffective. “This becomes a case about the separation of powers and checks and balances,” she said, emphasizing that enforcement isn’t solely an executive function.
Legal and Business Complexities
Senator Tom Cotton warned that enforcing the ban could lead to lawsuits against companies facilitating TikTok’s operations. “These entities could face billions in liability, not just from the DOJ, but also through securities law and shareholder lawsuits,” Cotton stated on X.
Despite potential risks, some experts, like Gus Hurwitz of the International Center for Law and Economics, argue that civil penalties are routine for businesses. He suggested that defying the ban could be a strategic decision, particularly for companies like Oracle, which has federal contracts.
Oracle, which acquired a 12.5% stake in TikTok Global in 2020, powers TikTok’s cloud infrastructure. Meanwhile, Apple and Google maintain their decision to remove TikTok from app stores, citing legal obligations.
As the situation unfolds, companies must weigh compliance with federal laws against the risks of opposing the administration’s assurances. For now, TikTok remains accessible to existing users, though its future in the U.S. hangs in the balance.