UK Businesses Warn of “Potentially Devastating” Impact from Possible US TikTok Ban

UK Businesses Warn of Potentially Devastating Impact from Possible US TikTok Ban
Credit: Isobel Perl

A potential TikTok ban in the US could have a “potentially devastating” effect on some UK businesses, online traders are cautioning. President Biden has signed a bill mandating TikTok’s Chinese owner, ByteDance, to sell its stake in the app within nine months or face a block in the US. TikTok has announced plans to challenge this decision in court.

According to TikTok, approximately 1.5 million UK businesses use the app. Isobel Perl, founder of Perl Cosmetics in London, is concerned about the impact of a US ban as her sales from the US account for a quarter of her revenue. Perl, who started her skincare business after losing her job during the pandemic, credits TikTok for significantly driving traffic to her website. She stated, “TikTok drives the most traffic of all social media apps,” and a ban could be “potentially devastating” for UK businesses reliant on the platform.

Kyle Frank, founder of Franks Remedies, a skincare business, also expressed concern. He noted that a substantial portion of his sales come from the US, thanks to TikTok. Frank said, “Certain months, 60-70% of our monthly sales have come from the US,” and a ban would greatly harm his business, which has relied on TikTok for customer acquisition without significant ad spend.

The US government’s push to ban TikTok stems from concerns over the app potentially sharing user data with the Chinese government—an accusation TikTok denies. The company has stated it will challenge the bill, calling it “unconstitutional” and warning that it would “trample the free speech rights of 170 million Americans” and harm millions of businesses.

Jenny Bailey, who runs Calla Shoes, a footwear brand for women with bunions, also highlighted TikTok’s significant impact on her US sales. Bailey reported that TikTok has helped grow her US revenue from 20% to 50% of her total business. She fears that a ban would stifle her ability to grow organically as quickly as she has with TikTok’s unique reach.

Legal action against the ban could delay the process, potentially prolonging the period before any block on TikTok takes effect.

Federica Calabrò

Federica Calabrò is a journalist at Parliament News, She is covering Business and General World News. She is a native of Naples, commenced her career as a teller at Poste Italiane before following her passion for dance. Graduating in classical dance, she showcased her talents with two entertainment companies, enchanting audiences throughout Italy. Presently, Federica serves as the general secretary at the Allianz Bank Financial Advisors financial promotion center in Naples. In this capacity, she manages office forms, provides document assistance for Financial Advisors, oversees paperwork for the back office, and ensures smooth customer reception and assistance at the front office. Outside her professional obligations, Federica indulges in her passion for writing in her leisure time.