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Congress is threatening to ban TikTok. Here's what you should know

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Congress is threatening to ban TikTok. Here's what you should know

The House of Representatives’ lopsided vote Wednesday in favor of a bill banning TikTok in the U.S. unless it is freed from Chinese control suggests the wildly popular short-video app could soon join Netscape and Myspace in the dustbin of history.

But the situation is far more complicated than that.

Policymakers agree that TikTok poses unique privacy and security threats because of the Chinese government’s influence over its owner, Beijing-based ByteDance. But the app has a powerful, albeit newly converted, backer in former President Trump, meaning that Republicans who would ordinarily support any bill to lessen Chinese influence are torn on the TikTok proposal.

Beyond that, TikTok captures the attention of an estimated 150 million Americans each month, roughly half of whom are active users, making it one of the most popular apps in the country — despite concerns about privacy, misinformation and harm to young users. The potential ban has drawn fiery objections from across the country, including from entrepreneurs, small businesses and marketers who say it would be a financial shock.

Some opponents of a ban have called it a violation of the 1st Amendment. Others wondered why TikTok was being singled out as a threat, considering how many apps hoover up their users’ personal data. And some argued that the bill would benefit only U.S. tech giants Meta, the owner of Facebook and Instagram, and Alphabet, the owner of YouTube.

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Here’s a quick rundown of what’s happening and why, and what it means for TikTok users.

What does the bill seek from TikTok?

The House-passed bill seeks to do the same thing Trump sought to do as president: take TikTok out of the hands of a Chinese company subject to Chinese law. The Trump administration went so far as to ban TikTok in the United States in 2020. That order was blocked by two federal courts, however, which held that the administration had overstepped its authority.

ByteDance, an internet-focused, venture-capital-funded startup founded in China in 2012, owns 100% of TikTok. Although outside investors control 60% of ByteDance, according to Axios, the Chinese company retains operational control.

The new bill, which sped through the House, would prohibit companies from distributing, maintaining or updating a “foreign adversary controlled application,” or providing internet hosting services for companies that do any of those things. It defines “foreign adversary controlled application” as ByteDance, TikTok and its successors, although it would give the president the power to name other social media and communications apps with 1 million or more users that are controlled by people residing in a “foreign adversary country.”

If passed by the Senate and signed into law, the measure would give ByteDance 180 days to end Chinese control, which would require it to limit Chinese investors to a 20% stake in the company. That would probably require ByteDance to spin off TikTok into an independent company with more limited Chinese investment.

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If ByteDance did not comply, the bill would require it to let users retrieve all their data, including all information about their preferences, views and uploads, in a format that could be transferred to another social media app.

Who uses TikTok?

According to Pew Research Center, 33% of U.S. adults said last year that they use TikTok. That’s a lot of people, yet it pales in comparison with the number using other major social media platforms. According to Pew, 83% of U.S. adults said last year that they use YouTube and 47% said they use Instagram.

Young people are far more likely to use TikTok than their parents, but even they make heavier use of YouTube and Instagram. According to Pew, 62% of 18- to 29-year-olds say they use TikTok, as do 63% of 13- to 17-year-olds.

“To me, TikTok is modern-day television and so any kind of disturbance of it would really hurt people — not just creators — because people really enjoy it,” said television personality Foodgod, formerly known as Jonathan Cheban.

Foodgod, who has 8.5 million followers for his food and lifestyle videos on TikTok, said he cycles through the social media apps on his phone every hour and enjoys the more casual vibe on TikTok. Banning it, he said, would be “literally like going into someone’s room and ripping their TV out of the wall, which I think is insane.”

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“But honestly, I think TikTok is here to stay. There’s too many people on it and too many people love it,” he said. “It feels like you’re so much freer on TikTok to do what you want. It’s not like Instagram — everything is so structured and you have to make it perfect.”

Could the government really ban TikTok?

Passing the Senate might be the smallest hurdle remaining for a TikTok ban.

ByteDance and other opponents of the bill are almost certain to challenge it in court on 1st Amendment grounds, just as they successfully challenged Montana’s attempt to ban the app. Defenders of the bill say it doesn’t impinge on free speech because it targets ByteDance’s conduct, not the content on the app. But critics counter that the bill wouldn’t protect Americans from having their data harvested by foreign interests.

Telecom industry experts say that it’s technically possible to ban TikTok, but there are issues.

First, the bill wouldn’t remove TikTok from the phones that already have it. It would, however, bar companies from providing TikTok updates, which could render the app unusable over time as phone operating systems change.

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Second, although the bill would force Google Play and Apple’s App Store to stop distributing TikTok’s app in the U.S., it wouldn’t apply to non-U.S. sources of phone software, nor would it be easy to enforce on unofficial sites online. So the app and its updates would remain available to people willing and able to “sideload” them from such sources.

That’s not hard on an Android phone, but on an Apple iPhone, it’s trickier — at least for now. Apple has just started allowing a form of sideloading in Europe, in response to the European Digital Markets Act.

There’s a trade-off to this approach, however, said Emma Llansó, former director of the Free Expression Project at the Center for Democracy and Technology. Without regular privacy and security updates, the app would become “a great target for people looking to exploit out-of-date software,” she said, adding, “It creates this other kind of vulnerability that would be affecting millions of people, including a lot of young people.”

If the government formally outlawed TikTok, network operators could conceivably block traffic between the company’s servers and U.S. users. But the app’s enormous user base may rush to find ways to circumvent any barriers, such as using virtual private networks to connect to TikTok through other countries, said Michael Calabrese, director of the Wireless Future Project at New America. “Savvy Chinese can do it, so [it] should be so much easier here,” Calabrese said. “I wouldn’t be surprised if this became a thing.”

What would a ban mean for content creators and small businesses?

An effective ban — which, again, is not a sure thing even if the bill becomes law — would mean at least three things for content creators.

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Established creators would be cut off from the loyal audience of followers they’d worked to build. New and established creators alike would lose access to a giant global marketplace of viewers. And creators of all stripes would have one fewer outlet for their work that offered unique tools and sensibilities.

The same would be true for the estimated 7 million small businesses that use TikTok to boost sales, by the app’s count. According to a survey last year by Capterra, a software consultant, small and medium-size businesses say their marketing efforts get far more engagement on TikTok than on other social media networks.

According to the Capterra survey, businesses have found the social network to be particularly useful in capitalizing on trends, carving out a distinct niche for their brand and educating customers about their products and services.

Granted, there are other platforms for the short videos that make up the vast majority of TikTok content, including Instagram Reels and YouTube #Shorts. Like TikTok, they use secret and mystifying algorithms to decide which videos to show users; the lessons creators learned in TikTok about how to generate views and build an audience may not apply anywhere else.

Anecdotes abound about people who quit their day jobs so they could build a business out of TikTok videos. The platform isn’t just for dancers, lip-synchers and pranksters — it’s also become a serious vehicle for ecommerce. The app launched TikTok Shop in September, quickly powering $7 million in sales a day.

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“I’m kind of in denial to be honest,” said Kelsey Martinez, 32, a TikTok creator who lives in Pasadena. “It just never occurred to me that this could actually happen. If TikTok were to go away tomorrow, it would completely change my entire life.”

Martinez joined the platform in 2022, mainly posting about her weight-loss journey. Last summer, after expanding her videos to include fashion, beauty and lifestyle content, her TikTok account took off, growing to more than 287,000 followers today. She gets a cut of the sales made from product links included in her videos, and has landed brand deals with skin-care companies Murad and Salt & Stone as well as Lizzo’s shapewear brand, Yitty.

“I actually stepped away from my full-time position because I’ve been able to make a living and make multiple times my yearly salary through TikTok. And so, really, it’s everything,” said Martinez, who previously worked in human resources for a nonprofit.

“This is what I do, this is my job. I would definitely take a hit if it were to go away,” she said.

Many creators say they already cross-post their TikTok videos to Instagram and other platforms (and vice versa), although the results can differ dramatically and unpredictably. TikTok creators who aren’t already putting their work on multiple platforms have a few months to do so before a federal ban could take effect.

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Bear in mind that the sites have different approaches to monetizing videos and generating revenue for creators. And building an audience presents a different challenge on each platform; for example, Meta-owned Facebook and Instagram encourage creators to pay to target their content to particular types of viewers, while building an audience on TikTok is more organic, said Kellis Landrum, co-founder of Los Angeles marketing agency True North Social.

TikTok influencer Ashley Dunham has been following news of the proposed ban carefully and has already made some adjustments to her social media strategy.

“I’ve been starting to post more of my content over on Instagram and it’s surprisingly getting some traction,” said Dunham, whose posts chronicle her experience with semaglutide (the active ingredient in Ozempic), plastic surgery and polycystic ovary syndrome. “The one downside about Instagram is that it’s always two weeks behind on trends.”

The 33-year-old from Jacksonville, Fla., called the possible TikTok ban “a disservice to not only creators but Americans as a whole,” saying U.S.-based apps similarly collect personal data from users and can be manipulated.

What would a ban mean for parents?

Aside from the national security concerns surrounding China’s access to TikTok users’ personal data, the biggest complaint about the app is how well it holds the attention of young users. In Pew’s survey last year, 17% of teens said they use TikTok almost constantly, and an additional 32% used it several times a day.

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Other concerns are more safety related, including fears that TikTok’s videos can fuel eating disorders and that the videos young people make of themselves will expose them to predators. The app’s default settings try to address those concerns, although the settings can be changed or circumvented by determined users.

If TikTok were to disappear tomorrow, that wouldn’t stop kids from staring at their cellphones for hours on end. According to Pew’s survey, 46% of teens said they were online almost constantly — far more than the percentage glued to TikTok. An additional 47% said they were online several times per day.

And the complaints raised about TikTok in terms of its addictiveness, reinforcement of unhealthy behavior and risk of predation have been leveled at other social networks as well.

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Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon

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Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon

President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.

In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”

“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.

The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.

Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.

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The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.

Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.

“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.

Anthropic didn’t immediately respond to a request for comment.

Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”

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The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.

On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.

The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.

Still, Amodei was worried about Washington’s commitment.

“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”

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Tech workers have backed Anthropic’s stance.

Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.

“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.

Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.

Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.

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“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”

Anthropic has distinguished itself from its rivals by touting its concern about AI safety.

The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”

Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.

The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.

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Video: The Web of Companies Owned by Elon Musk

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Video: The Web of Companies Owned by Elon Musk

new video loaded: The Web of Companies Owned by Elon Musk

In mapping out Elon Musk’s wealth, our investigation found that Mr. Musk is behind more than 90 companies in Texas. Kirsten Grind, a New York Times Investigations reporter, explains what her team found.

By Kirsten Grind, Melanie Bencosme, James Surdam and Sean Havey

February 27, 2026

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Commentary: How Trump helped foreign markets outperform U.S. stocks during his first year in office

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Commentary: How Trump helped foreign markets outperform U.S. stocks during his first year in office

Trump has crowed about the gains in the U.S. stock market during his term, but in 2025 investors saw more opportunity in the rest of the world.

If you’re a stock market investor you might be feeling pretty good about how your portfolio of U.S. equities fared in the first year of President Trump’s term.

All the major market indices seemed to be firing on all cylinders, with the Standard & Poor’s 500 index gaining 17.9% through the full year.

But if you’re the type of investor who looks for things to regret, pay no attention to the rest of the world’s stock markets. That’s because overseas markets did better than the U.S. market in 2025 — a lot better. The MSCI World ex-USA index — that is, all the stock markets except the U.S. — gained more than 32% last year, nearly double the percentage gains of U.S. markets.

That’s a major departure from recent trends. Since 2013, the MSCI US index had bested the non-U.S. index every year except 2017 and 2022, sometimes by a wide margin — in 2024, for instance, the U.S. index gained 24.6%, while non-U.S. markets gained only 4.7%.

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The Trump trade is dead. Long live the anti-Trump trade.

— Katie Martin, Financial Times

Broken down into individual country markets (also by MSCI indices), in 2025 the U.S. ranked 21st out of 23 developed markets, with only New Zealand and Denmark doing worse. Leading the pack were Austria and Spain, with 86% gains, but superior records were turned in by Finland, Ireland and Hong Kong, with gains of 50% or more; and the Netherlands, Norway, Britain and Japan, with gains of 40% or more.

Investment analysts cite several factors to explain this trend. Judging by traditional metrics such as price/earnings multiples, the U.S. markets have been much more expensive than those in the rest of the world. Indeed, they’re historically expensive. The Standard & Poor’s 500 index traded in 2025 at about 23 times expected corporate earnings; the historical average is 18 times earnings.

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Investment managers also have become nervous about the concentration of market gains within the U.S. technology sector, especially in companies associated with artificial intelligence R&D. Fears that AI is an investment bubble that could take down the S&P’s highest fliers have investors looking elsewhere for returns.

But one factor recurs in almost all the market analyses tracking relative performance by U.S. and non-U.S. markets: Donald Trump.

Investors started 2025 with optimism about Trump’s influence on trading opportunities, given his apparent commitment to deregulation and his braggadocio about America’s dominant position in the world and his determination to preserve, even increase it.

That hasn’t been the case for months.

”The Trump trade is dead. Long live the anti-Trump trade,” Katie Martin of the Financial Times wrote this week. “Wherever you look in financial markets, you see signs that global investors are going out of their way to avoid Donald Trump’s America.”

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Two Trump policy initiatives are commonly cited by wary investment experts. One, of course, is Trump’s on-and-off tariffs, which have left investors with little ability to assess international trade flows. The Supreme Court’s invalidation of most Trump tariffs and the bellicosity of his response, which included the immediate imposition of new 10% tariffs across the board and the threat to increase them to 15%, have done nothing to settle investors’ nerves.

Then there’s Trump’s driving down the value of the dollar through his agitation for lower interest rates, among other policies. For overseas investors, a weaker dollar makes U.S. assets more expensive relative to the outside world.

It would be one thing if trade flows and the dollar’s value reflected economic conditions that investors could themselves parse in creating a picture of investment opportunities. That’s not the case just now. “The current uncertainty is entirely man-made (largely by one orange-hued man in particular) but could well continue at least until the US mid-term elections in November,” Sam Burns of Mill Street Research wrote on Dec. 29.

Trump hasn’t been shy about trumpeting U.S. stock market gains as emblems of his policy wisdom. “The stock market has set 53 all-time record highs since the election,” he said in his State of the Union address Tuesday. “Think of that, one year, boosting pensions, 401(k)s and retirement accounts for the millions and the millions of Americans.”

Trump asserted: “Since I took office, the typical 401(k) balance is up by at least $30,000. That’s a lot of money. … Because the stock market has done so well, setting all those records, your 401(k)s are way up.”

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Trump’s figure doesn’t conform to findings by retirement professionals such as the 401(k) overseers at Bank of America. They reported that the average account balance grew by only about $13,000 in 2025. I asked the White House for the source of Trump’s claim, but haven’t heard back.

Interpreting stock market returns as snapshots of the economy is a mug’s game. Despite that, at her recent appearance before a House committee, Atty. Gen. Pam Bondi tried to deflect questions about her handling of the Jeffrey Epstein records by crowing about it.

“The Dow is over 50,000 right now, she declared. “Americans’ 401(k)s and retirement savings are booming. That’s what we should be talking about.”

I predicted that the administration would use the Dow industrial average’s break above 50,000 to assert that “the overall economy is firing on all cylinders, thanks to his policies.” The Dow reached that mark on Feb. 6. But Feb. 11, the day of Bondi’s testimony, was the last day the index closed above 50,000. On Thursday, it closed at 49,499.50, or about 1.4% below its Feb. 10 peak close of 50,188.14.

To use a metric suggested by economist Justin Wolfers of the University of Michigan, if you invested $48,488 in the Dow on the day Trump took office last year, when the Dow closed at 48,448 points, you would have had $50,000 on Feb. 6. That’s a gain of about 3.2%. But if you had invested the same amount in the global stock market not including the U.S. (based on the MSCI World ex-USA index), on that same day you would have had nearly $60,000. That’s a gain of nearly 24%.

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Broader market indices tell essentially the same story. From Jan. 17, 2025, the last day before Trump’s inauguration, through Thursday’s close, the MSCI US stock index gained a cumulative 16.3%. But the world index minus the U.S. gained nearly 42%.

The gulf between U.S. and non-U.S. performance has continued into the current year. The S&P 500 has gained about 0.74% this year through Wednesday, while the MSCI World ex-USA index has gained about 8.9%. That’s “the best start for a calendar year for global stocks relative to the S&P 500 going back to at least 1996,” Morningstar reports.

It wouldn’t be unusual for the discrepancy between the U.S. and global markets to shrink or even reverse itself over the course of this year.

That’s what happened in 2017, when overseas markets as tracked by MSCI beat the U.S. by more than three percentage points, and 2022, when global markets lost money but U.S. markets underperformed the rest of the world by more than five percentage points.

Economic conditions change, and often the stock markets march to their own drummers. The one thing less likely to change is that Trump is set to remain president until Jan. 20, 2029. Make your investment bets accordingly.

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