Trump 2.0: How Tariffs and TikTok are to be Shaped in 2025
US President Donald Trump has granted TikTok, the short-form video sharing platform owned by Chinese technology company ByteDance, a 75-day extension to comply with US legislation requiring its sale or it faces a ban.
The decision somewhat marked a reversal of the platform's brief shutdown that affected 170 million US users.
"Every rich person has called me about TikTok," President Trump said, speaking from the Oval Office whilst signing executive orders.
The executive order for TikTok provides ByteDance additional time to secure a US buyer for a majority stake in TikTok. The platform had temporarily ceased US operations following legislation signed by former President Joe Biden, which required ByteDance to sell the app or face a ban, citing national security concerns.
The platform was reinstated in the US several hours after the ban was implemented.
The news comes at the same time as Trump revoking an AI executive order from 2023 that addresses AI risks.
How social media giants are engaging with Trump
TikTok's position reflects complex US-China relations regarding technology ownership. While previous Chinese government statements opposed forced divestment, recent communications from the People’s Republic of China's foreign ministry indicate companies should "decide independently" about operations.
TikTok has resumed US services following Trump's intervention. "We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over seven million small businesses to thrive," the company says in a statement.
Trump's stance shift coincides with his campaign's success on the platform. "I have a warm spot in my heart for TikTok because I won the youth by 34 points," Trump says. "And there are those that say TikTok had something to do with that."
Other social media giants are also voicing support for Trump. Meta, the parent company of Facebook and Instagram, has responded by announcing plans to axe fact-checking operations across its platforms.
Company founder Mark Zuckerberg frames the decision as part of a broader push against restrictions on online speech.
"We're going to work with President Trump to push back on governments around the world that are going after American companies and pushing to censor more," Zuckerberg says.
The approach mirrors content moderation changes at X, formerly Twitter, which implements a system called 'community notes' where users evaluate post accuracy rather than dedicated fact-checkers.
Trump’s tariffs loom
The new President has suggested the US “should be entitled to get half of TikTok” if the app continued its operations beyond his suggested cut-off.
He has said potential new trade tariffs on China could be contingent on a deal over the platform's ownership, highlighting that Beijing rejecting a deal could be seen as a hostile act.
China was one of three countries Trump threatened to hit with tariffs on his first day in office, stating he could impose levies of 25% on Canada and Mexico from 1st February 2025.
However, he did not enact 60% levies on Chinese imports like he said he would during his election campaign. This suggests that tariffs could be paused until the decision on TikTok is reached.
It is also suggested that investors are keeping a close eye on the World Economic Forum in Davos this week, where political and business leaders are meeting as they do every year.
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