TikTok upcoming U.S. ban, scheduled for Jan. 19, 2025, following a federal court ruling, could have far-reaching economic implications. If ByteDance, TikTok’s parent company, fails to divest to non-Chinese ownership, the app will be banned, posing significant challenges to small businesses, creators, and the broader economy.
- TikTok contributed $24.2 billion to the U.S. GDP in 2023, including $15 billion from small businesses via organic reach and paid advertising.
- The platform supported 224,000 jobs and contributed $5.3 billion in taxes, as per an Oxford Economics report.
- Businesses in food and beverage, health and wellness, and business services heavily depend on TikTok for revenue and customer outreach.
- Creators like Shira, who rely on TikTok partnerships for income, face uncertain futures without viable alternatives for their livelihood.
- Legal challenges are ongoing, with TikTok filing a motion for an injunction to delay the ban while awaiting U.S. Supreme Court review.
- Experts warn that businesses targeting Gen Z and international brands may struggle to replicate TikTok’s reach and engagement on other platforms.
The ban could result in over $1 billion in monthly revenue losses for small businesses and nearly $300 million in earnings for creators, disrupting livelihoods and entire industries reliant on TikTok’s marketing power. As legal battles continue, the fate of millions hangs in the balance.
