Jan 16, 2025
TikTok has transformed from a social media app into a cultural and economic tool that redefined digital marketing and reshaped how creativity and commerce intersect online. But its fate in the United States is now hanging by a thread.
On Jan. 10, the Supreme Court heard arguments over a proposed law that could force TikTok’s parent company, ByteDance, to sell the platform or risk a nationwide ban. Federal officials argue that ByteDance’s Chinese ownership poses a national security threat.
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However, TikTok and its users see it differently, claiming the ban would violate First Amendment rights. And for many creators, including Cora Lakey, the stakes are high.
Lakey left a six-figure job in talent acquisition and project management after TikTok gave her financial freedom that allowed her to pay off some of her student debt and has given her autonomy over how she spends her day to day.
As it stands, unless ByteDance moves forward with a sale, the site will be banned as of January 19. In a recent TikTok, Lakey fired back at those who’ve called the platform’s users “out of touch” for their concerns over the Supreme Court decision.
“Influencers aren’t out of touch for crying about the TikTok ban,” she said. “You’re out of touch for not realizing this is a real industry.”
How will content creators be impacted?
TikTok’s potential shutdown forces content creators to make critical decisions about their income streams. Over the past few years, TikTok has allowed creators to monetize their content through brand partnerships, sponsorships, and commerce via TikTok Shop. For many, it has transformed creative passions into sustainable livelihoods.
Nicol Turner Lee, senior fellow in governance studies and director of the Center for Technology Innovation at the Brookings Institution, highlighted the economic ramifications in an interview with National Public Radio. “Some would argue that with TikTok shutting down, they could wipe out about $1.3 billion in U.S. small business and creator revenue within just one month," she said.
The $1.3 billion figure Turner Lee references comes from TikTok’s own projections, shared in court filings related to the case, according to a CNBC report.
A ban would disrupt creators’ revenue streams, leaving many scrambling to rebuild their presence elsewhere. TikTok’s blend of discoverability and engagement has been a key factor in its success — one that other platforms may struggle to replicate.
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Taylor Byrne, who goes by Queen Tay on TikTok, where she shares her thrift shopping finds, shared how the ban would impact her personally. Having just signed a $2,000 lease, purchased a 2025 car, and bracing for upcoming moving expenses, she’s aware of the financial stakes. Yet, she remains cautiously optimistic.
“There’s going to be a major shift likely from what I’m seeing from TikTok to Meta platforms and they’re already rolling out new monetization programs to help adjust with this,” Byrne explained.
Many TikTok users are now scrambling to direct their followers to accounts on platforms like YouTube or Instagram. Those with already established followings on those sites may feel less pressure from the ban, as they already have alternative revenue streams in place. But for influencers relying solely on TikTok, the road ahead will likely require significant adaptation.
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What about small businesses
TikTok has been a game-changer for small businesses, providing a platform where engaging content takes precedence over follower count. The algorithm has allowed small businesses to reach audiences that would have been otherwise unattainable through traditional advertising or other social media platforms.
According to TikTok’s Economic Impact Report, conducted by Oxford Economics, the platform generated $14.7 billion in revenue for small- and medium-sized businesses in the U.S. in 2023. In total, TikTok says it contributed $24.3 billion to the country’s GDP that year. The report adds that over 7 million U.S. businesses rely on TikTok, supporting 224,000 jobs through small business activity alone.
The loss of TikTok would force many businesses to pivot to more expensive and potentially less effective channels to attract customers, putting their operations at risk. Washington, D.C.-based wedding stylist Kati Kons, known on TikTok as @portraitofabrideonfire, expressed the implications for her livelihood during an interview with CBC.
“It really hit me where I was like, 90% of my business comes from TikTok. Ninety percent of my clients,” she told the CBC. “I don’t think I’ve had a single client inquiry come in from Instagram.”
For small businesses that rely on TikTok as a primary marketing tool, the ban could mean the loss of not just revenue but also the visibility and accessibility that helped them grow. Without affordable and effective alternatives, many may face significant challenges in sustaining their growth or, in some cases, their survival as an influencer.
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Victoria Vesovski is a Toronto-based Staff Reporter at Moneywise, where she covers the intersection of personal finance, lifestyle and trending news. She holds an Honours Bachelor of Arts from the University of Toronto, a postgraduate certificate in Publishing from Toronto Metropolitan University and a Master’s degree in American Journalism from New York University’s Arthur L. Carter Journalism Institute. Her work has been featured in publications including Apple News, Yahoo Finance, MSN Money, Her Campus Media and The Click.
