TikTok Announces Deal to Keep the Popular App Working in the U.S.

What Happened?

TikTok announced the implementation of a new agreement with the U.S. government that will allow the popular video site to continue working in the United States. TikTok, which is owned by Chinese company ByteDance, had been preparing to cease operations in the U.S. in January 2025 if its parent company did not become acquired by an American owner. 

The formula for TikTok’s powerful algorithm has now been licensed to an American owner, and because of that, the Trump Administration gave approval to continue operations in the U.S.

Why it Matters

For most of 2025, the future of TikTok was in doubt after Congress passed legislation mandating that TikTok be purchased by an American owner in order to continue operating in the U.S. President Trump delayed the implementation of the law several times, and after an uncertain year, TikTok now looks poised to continue being available to American users. As of January 2026, an estimated two hundred million Americans use or have used TikTok.

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Under the terms of the new agreement, TikTok will only train on data from American users, a significant change from the past. Exactly how those changes will affect the algorithm and the app’s performance is unknown, but most experts agree the user experience will probably be noticeably different for people using the app in the U.S. Globally, nearly two billion people were using TikTok as of 2025. 

The basis of the legislation banning TikTok was a claim that the app secretly gathered information on people using it, and that information vacuuming represented a national security threat to the United States. ByteDance denied that data it gathered was being handed over to the Chinese government.

TikTok says the data from American users will be stored in Oracle’s cloud server. The changes to the algorithm and storage location online could cause the app to operate more slowly and with less variety. The app works by showing users a constantly changing stream of short video clips, so the type and amount of new clips shown to users could be the most noticeable change for users. 

How it Affects You

For the two hundred million American users, the deal means they will have continued and uninterrupted access to TikTok going forward. While the Trump Administration expressed national security concerns about TikTok, they were also likely concerned about the app’s cultural influence on American users. TikTok’s cultural influence is likely to continue despite the recent ownership changes. 

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