Trump’s Executive Order on TikTok Could Result in $850 Billion in Penalties
On January 20, President Donald Trump signed an executive order impacting the TikTok ban. The order gives the U.S. Attorney General a 75-day window to hold off on enforcing a law that makes it illegal to host or distribute TikTok.
Trump argued that the timing of the TikTok ban, which took effect on January 19, was too rushed and interfered with his ability to properly review the national security risks.
The order is intended to delay action on the ban and protect those involved with TikTok from legal consequences during the extension. However, Variety reports that experts warn that companies violating the law may still face heavy fines—potentially as high as $850 billion—due to TikTok’s large user base in the U.S.
Despite Trump’s move, some lawmakers, like Senators Rick Cotton and Pete Ricketts, have warned that companies distributing TikTok in the U.S. could face severe financial consequences, including lawsuits and state actions. They argue that the law is in effect and there is no legal reason to extend it.
TikTok briefly shut down on January 19 but quickly resumed its operations after Trump’s order was issued. Oracle, which handles TikTok’s U.S. data, is reportedly working to ensure the app remains available. However, TikTok remains unavailable for download in Apple and Google app stores.
Legal experts, like constitutional scholar Alan Rozenshtein, point out that Trump’s executive order does not override the law passed by Congress, which still makes the ban legally binding. For the extension to apply, there would need to be proof that ByteDance, TikTok’s parent company, had legally agreed to sell its U.S. operations. So far, no such agreement has been made.
Trump’s proposal includes the U.S. taking a 50% ownership stake in TikTok, a move that would require both the Chinese government and ByteDance to agree. There is no indication that ByteDance is willing to sell, especially with China unlikely to approve such a deal.
If the U.S. were to own part of TikTok, it could raise concerns about government influence on the app, which might impact advertisers’ willingness to use the platform. Ad industry analyst Brian Wieser warned that a potential partnership with the government could lead to a new set of problems for advertisers.
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