Trump signs executive order to shield TikTok from US ban, setting up complex legal road ahead

Published On Jan 20, 2025, 8:28 PM

President Trump has signed an executive order on his first day back in office to protect TikTok from a ban in the U.S., following a new law that would restrict access to the app unless its parent company, ByteDance, divests its ownership to a non-adversarial entity. This order grants a 75-day period to assess the national security implications of the previous legislation. While Trump proposed a joint U.S. stake in TikTok, the legality of his executive order is uncertain, with critics arguing it may conflict with existing laws.

Stock Forecasts

GOOGL

Positive

Given TikTok's substantial user base and its potential impact on the tech landscape, this executive order could stabilize the app's presence in the U.S. market temporarily, boosting investor confidence in related tech sectors.

AAPL

Negative

The ongoing negotiations surrounding TikTok and its compliance with U.S. laws could introduce volatility in tech stocks, particularly within companies involved in app distribution, such as Apple.

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