As TikTok nears its second major U.S. ban deadline in less than three months, creators and marketing firms are bracing for impact but remain cautiously optimistic that the Chinese-owned app will strike a deal before the April 5 cutoff. President Donald Trump said Sunday he is "pretty certain" an agreement will be reached, though he has also suggested he may extend the deadline or reduce tariffs on China to facilitate a transaction.
The app's future hinges on compliance with a national security law originally signed by former President Joe Biden, requiring TikTok's parent company ByteDance to divest its U.S. operations. Trump's executive order in January granted ByteDance 75 additional days to finalize a deal after the original January 19 deadline passed. The reprieve kept the app operational and revived creator confidence, at least temporarily.
"I'm trying to be optimistic and hope that they keep it, but as a creator, I have to be prepared either way," said Gianna Christine, a TikTok influencer with 2.7 million followers.
While no specific updates have been shared by TikTok with creators or brand partners, many are proactively expanding their presence on platforms like YouTube, Instagram Reels, and Snapchat. "If you're not already posting on Snapchat, Instagram Reels, YouTube Shorts, that's where you need to be," said Alyssa McKay, who has over 10 million followers. She added that she now earns more revenue from other platforms than TikTok.
Marketing agency Meltwater announced it joined TikTok's marketing partner program in March despite uncertainty about the app's legal status. "They are actually going to do more and more things that we can build together and then expose to our customers," said Meltwater CTO Aditya Jami, noting that TikTok representatives appeared to be "in the dark" but were proceeding with business as usual.
Data from influencer marketing firm Later showed that while creators increased their content on Threads and YouTube by 10% and 6% respectively during the January ban window, overall posting activity remained steady. However, Later's March data indicates that creators and brands are now reducing scheduled TikTok content while reallocating posts to Instagram, suggesting a strategic shift toward platforms perceived as more stable.
There's a clear trend of "reallocating content to Instagram as a safer or more stable alternative," a spokesperson for Later told CNBC.
Private equity firm Blackstone is reportedly exploring a minority investment in TikTok's U.S. division, potentially joining forces with existing non-Chinese stakeholders such as General Atlantic and Susquehanna International Group.
Despite widespread use-nearly half of Americans have a TikTok account-the platform remains a flashpoint in U.S.-China relations. Lawmakers have raised concerns over ByteDance's links to the Chinese Communist Party and data privacy issues. "Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok's data collection practices and relationship with a foreign adversary," the U.S. Supreme Court stated in its ruling to uphold the divest-or-ban law.
Trump has used the app as a campaign tool and remains reluctant to shut it down. "Maybe I'll give them a little reduction in tariffs or something to get it done," he said Sunday, referring to ByteDance's negotiations.
