MIAMI-DADE COUNTY, Fla. – The clock is running out on TikTok. The popular app appears on track to be banned in the United States on Sunday.
If the ban is upheld, small businesses could suffer. Around $1 billion in small business revenue will be lost just in the first month.
There are 170 million U.S. TikTok users who are on the edge of their seats waiting on a Supreme Court decision to uphold a ban on the app or not.
It comes after concerns were voiced over the Chinese parent company ByteDance possibly sharing data with China.
Now creators and business owners are left in limbo, including Gabriela Trujillo, the owner of Alamar Cosmetics.
A bulk of her revenue comes from TikTok Shop. She sells her products on a live stream daily.
“Right now about 90% of my cash flow is from TikTok Shop,” said Trujillo.
Alamar Cosmetics is just one of 7 million U.S. small businesses at risk if the ban goes through.
“It would be detrimental to my business,” said Trujillo, who added that other platforms like Meta don’t have the same selling tools.
“TikTok Shop is so unique, it has affiliate marketing built in so a regular creator that is just a customer can make a video with my product tagged to it make a sale and that customer has made commission,” said Trujillo.
According to Forbes, more than $24 billion of economic activity is at risk if TikTok goes away, and people employed by creators and businesses like Alex Alvarez, the social media manager for Alamar Cosmetics and Dr. Miami, are anxiously awaiting what is next.
Dr. Miami’s account boasts 3.2 million followers, which Alvarez says are potential future patients.
“Every time we get a follow, we can pretty much count on a lead coming in,” he said. “That allows for us to turn that into a patient.”
If TikTok does not divest from its parent company ByteDance, the ban will take effect Sunday. That is unless the Supreme Court delays the ban, or there is another avenue to save the app.
Currently, President Joe Biden and President-elect Donald Trump say they want to find a way to save TikTok.