Trump’s Bold Move Saves TikTok: Here's What Happens Next for 170 Million U.S. Users!

TikTok began to restore its services to U.S. users on Sunday, following comments from President-elect Donald Trump, who assured the public that he would work to bring the app back once he took office on Monday.

"Frankly, we have no choice. We must save it," Trump stated during a rally, just ahead of his inauguration. He added that the U.S. government would pursue a joint venture to reinstate TikTok, which has a user base of 170 million Americans.

In a message to its users, TikTok acknowledged Trump’s efforts, stating: "Thanks to President Trump’s actions, TikTok is now back in the U.S."

Earlier, users in the U.S. were able to access TikTok’s website, but the app itself only partially came back online for some, offering limited functions. By Sunday evening, the app was still unavailable for download from U.S. app stores.

TikTok explained in an earlier statement, "In agreement with our service providers, TikTok is in the process of restoring full service." The company also expressed gratitude to Trump for providing "clarity and reassurance" to its service partners, ensuring they would not face penalties for continuing to provide the app to U.S. users, which supports over 7 million small businesses.

Trump’s public support of TikTok came at a sensitive time in U.S.-China relations. While Trump has criticized China and vowed to implement tariffs, he also expressed a desire to strengthen direct relations with Chinese leadership.

In response to the developments, China’s foreign ministry emphasized that businesses should operate independently, with spokesperson Mao Ning stating: "TikTok has long been a part of the U.S. digital landscape and is loved by American users. We hope the U.S. will create a fair and open business environment for foreign companies."

TikTok temporarily stopped working for U.S. users late on Saturday, just before a new law aimed at banning the app on national security grounds took effect on Sunday. U.S. authorities had raised concerns about the potential misuse of American user data by TikTok’s Chinese parent company, ByteDance.

Trump responded by stating he would "extend the time before the law's prohibitions go into effect," allowing for a deal that would protect U.S. security while keeping TikTok operational. He proposed that the U.S. hold a 50% stake in the joint venture that would manage the app moving forward.

Trump’s stance represents a shift from his earlier position in 2020 when he sought to ban the app over national security concerns. More recently, he praised TikTok for helping him engage with younger voters during his 2024 presidential campaign.

In 2020, Trump attempted to force ByteDance to sell TikTok but later approved a deal that involved a partnership with Oracle and Walmart, rather than a full divestment.

Not all members of Trump’s Republican Party were in favor of circumventing the law to "Save TikTok." Senators Tom Cotton and Pete Ricketts argued in a joint statement that once the law took effect, there would be no legal grounds for an extension. They insisted that ByteDance must sell the app and sever all links with the Chinese government for TikTok to return.

The U.S. has never banned a major social media platform, and the new law, which passed with broad bipartisan support, gives the government the power to block or demand the sale of other Chinese-owned apps. Apps owned by ByteDance, such as CapCut and Lemon8, were also removed from U.S. app stores on Saturday.

"HAIR ON FIRE" MOMENT

Following TikTok’s shutdown, there was a noticeable spike in searches for "VPN" on Google Trends. Additionally, users on Instagram expressed anxiety about whether they would still receive goods purchased through TikTok Shop, the app’s e-commerce platform.

Marketing agencies that rely on TikTok rushed to make contingency plans. One executive referred to the situation as a "hair on fire" moment, noting that many had assumed a solution to keep the app running would materialize, only for the sudden shutdown to catch them off guard.

TikTok CEO Shou Zi Chew is reportedly planning to attend both the U.S. presidential inauguration and a rally with Trump on Sunday, according to sources.

Meanwhile, there is growing interest in acquiring TikTok. Former Los Angeles Dodgers owner Frank McCourt is among those looking into the company, which analysts believe could be valued at up to $50 billion. Media outlets have also suggested that Beijing explored selling TikTok’s U.S. operations to billionaire Elon Musk, a close ally of Trump, though TikTok has denied these claims.

On Saturday, Perplexity AI, a U.S.-based search engine startup, made a bid to ByteDance to merge with TikTok’s U.S. operations, according to a source familiar with the matter. The deal would create a new entity by combining TikTok U.S. with other partners.

ByteDance, which is privately held, is about 60% owned by institutional investors like BlackRock and General Atlantic, with the founders and employees each owning a 20% stake. The company employs over 7,000 people in the U.S.