TikTok will finally be banned in the United States starting 19 January 2025, after a federal appeals court rejected its bid to overturn the ban that President Biden signed in April. The law states that if TikTok's parent company, ByteDance, doesn't divest its ownership to non-Chinese companies, the app will be banned in the U.S.
With the ban date quickly approaching, it has the potential to ripple through the U.S. economy, particularly among the seven million small and medium-sized businesses (SMBs) that use the platform to generate revenue and grow their brands.
Oxford Economics released a report in March 2024 that reveals TikTok’s impacts on U.S. businesses. In 2023, the platform supported US$ 24.2 billion in the U.S. GDP, including US$ 15 billion in revenue generated by small businesses through organic reach and TikTok's paid advertising. According to the report, TikTok has also facilitated 224,000 American jobs and contributed US$ 5.3 billion in taxes.
In an article from TikTok Newsroom, Blake Chandlee, TikTok's President of Global Business Solutions, expressed the importance of the platform. "Businesses across America depend on TikTok's unique ability to help them reach otherwise unreachable customers, generate new revenue streams and drive awareness of their brands, products and services."
According to Oxford Economics, the food and beverage, health and wellness and business service sectors particularly relied on TikTok, collectively contributing billions to the GDP.
On 9 December, TikTok announced that it had taken legal action, filing an emergency motion for an injunction to delay the ban while the U.S. Supreme Court reviews the case. TikTok has reiterated its commitment to safeguarding its 170 million U.S.-based users and preserving the opportunities it creates for businesses, creators and the economy at large.
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