TikTok Ban in United States Predicted To Be Harmful to UK Businesses

Online traders in the UK are expressing concern over the potential repercussions of a TikTok ban in the US, warning of a “potentially devastating” impact on their businesses.

President Biden recently signed a bill into law mandating that TikTok’s Chinese owner, ByteDance, must divest its stake in the app within nine months, or face being blocked in the US. TikTok has vowed to challenge this decision in court.

According to TikTok, approximately 1.5 million UK businesses operate on the platform, highlighting its significance to the UK economy.

President Biden recently signed a bill into law mandating that TikTok
Tiktok in UK Illustration

Isobel Perl, founder of Perl Cosmetics in London, fears the consequences of a ban as a substantial portion of her sales, around a quarter, come from the US. Utilizing TikTok to drive traffic to her website, Perl underscores its effectiveness compared to other social media platforms.

Similarly, Kyle Frank, founder of Franks Remedies, relies on TikTok to market his skincare products, with the US being a significant market. He emphasizes that a ban would severely impact his business, as a substantial portion of monthly sales originates from American customers.

The concerns arise from worries over TikTok’s alleged data-sharing practices with the Chinese government, prompting US officials to pursue the ban. TikTok has consistently denied these allegations and plans to contest the law in court.

TikTok Getting Banned By Congress

Jenny Bailey, founder of Calla Shoes, echoes the sentiments of her fellow entrepreneurs, noting the significant role TikTok plays in driving traffic and revenue, particularly from the US market.

She anticipates a substantial setback if the platform is banned, as alternative social media platforms do not yield the same level of engagement and traffic from American consumers.

While legal challenges may delay the implementation of the ban, the potential ramifications for UK businesses underscore the significance of TikTok’s role as a marketing platform.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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