Trump Considering Lifting TikTok Ban as Snap Faces Decline

According to reports, President-elect Donald Trump is considering steps to halt the upcoming TikTok ban that he pledged to support during his campaign. This news caused Snap's (SNAP) stock price to drop by more than 5% on Tuesday. TikTok has until January 19 to either sell its U.S. operations, owned by Chinese parent company ByteDance, or face a ban under legislation that received bipartisan support this year. This implies that TikTok's future may hinge on Trump’s potential second term; during this period, Trump could work to ensure the platform remains accessible to millions of U.S. users.

Reports indicate that Trump sees TikTok as an asset, especially after amassing over 14 million followers on the platform. The publication mentions that Trump's longtime ally, Kellyanne Conway, stated Trump intends to avoid alienating "180 million U.S. users," describing TikTok's existence as central to Trump's appeal, as he values the platform's reach for political messaging.

If ByteDance fails to meet the divestment deadline, Trump may explore options to delay or even cancel the ban. One potential avenue, as reported, could involve using his administration's authority to extend the deadline by 90 days in the event of "significant progress."

Additionally, legal experts suggest that Trump could encourage Congress to completely repeal the law or direct his attorney general not to enforce it. Despite his previous stance supporting the TikTok ban due to national security concerns, this softened view reflects an appreciation for the platform's political potential.

Nonetheless, the topic remains contentious, especially among Republicans wary of potential Chinese government influence through the app. However, Trump’s apparent shift could signal a significant policy change regarding TikTok's presence in the U.S.