President-elect Donald Trump is reportedly considering issuing an executive order to temporarily suspend the enforcement of the TikTok sale-or-ban law for 60 to 90 days in a bid to secure an early victory in his second term, as per a report in the Washington Post citing anonymous sources familiar with the discussions. The potential executive order could delay the nationwide ban of the Chinese-owned app, which is currently set for Sunday.
Trump has expressed interest in saving the popular video app and has been exploring unconventional dealmaking strategies. With a significant following on TikTok boasting over 14 million followers, Trump has previously shown his fondness for the platform.
The law, signed by President Joe Biden last year, mandates ByteDance, the Beijing-based tech giant that owns TikTok, to sell the app by January 19 or face an immediate ban. The Supreme Court, which recently considered TikTok’s challenge to the law, is likely to allow it to proceed as planned.
However, some legal experts have raised doubts about Trump’s potential use of an executive order, arguing that the president’s authority may not supersede a law passed by Congress with bipartisan support. While an executive order could formalize the president’s intention not to enforce the law, TikTok could still face a ban, making it illegal for Apple and Google to engage in business with the app.
Despite his initial attempts to ban TikTok during his first term, Trump has come to view the app as a means to challenge tech companies he opposes and connect with young voters swiftly. TikTok’s chief executive, Shou Zi Chew, even traveled to Trump’s Mar-a-Lago Club in Palm Beach last month in a last-ditch effort to salvage the app’s presence in the U.S.
To circumvent the law, Trump may urge Congress to repeal it or instruct his attorney general not to enforce it. Other options include divesting parts of the company to American firms or establishing a “qualified divestiture” to prevent a ban on the app.
During his first term, Trump pushed for the sale of a significant stake in TikTok to corporate giants like Oracle and Walmart. However, the sale seems improbable due to political risks and an estimated price tag of around $50 billion. Additionally, the market for short-video apps has become more saturated, with competition from platforms like Instagram and YouTube.
ByteDance has reiterated that TikTok is not up for sale, leading to uncertainty and disheartenment among TikTok’s U.S. employees. Nonetheless, the U.S. headquarters are expected to remain operational. Some observers speculate that the U.S. and China could leverage the app as a bargaining chip in trade discussions, contingent on an agreement between senior officials from both nations.
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