The rise of 2025
Navigating TikTok ban, tariffs, and a new leadership era
As we step into 2025, the digital landscape is transforming in remarkable ways, especially with the looming possibility of a TikTok ban. This heated topic has ignited vibrant debates about freedom of expression, the pervasive influence of social media, and the complex trade tensions simmering between the United States and China.
TikTok has emerged as a major player in the social media arena, with projections indicating it will reach 1.8 billion active monthly users by the end of the year. This places it as the fifth-most-popular social network globally, alongside major platforms like YouTube, WhatsApp, Instagram, and Facebook. In the US alone, TikTok boasts around 121.5 million active users, effectively reaching approximately 150 million people throughout North America.
Globally, users are spending an average of nearly an hour each day on TikTok, making it the most engaging social media platform. The app has become a primary source of entertainment, featuring dynamic content and live streams from popular creators and influencers.
In terms of financial success, TikTok’s parent company, ByteDance, reported a 60 per cent increase in profits in 2023, totaling US$40 billion, with sales rising from US$80 billion to US$120 billion that same year. Additionally, ByteDance is expanding its business internationally, launching TikTok Shop in the US and south-east Asia.
Notably, TikTok has transformed the landscape for content creators. Many top creators utilise TikTok’s Creator Fund, while mega influencers have built substantial revenue streams from brand partnerships, merchandise, and diverse investments. For instance, Khaby Lame, who has 154 million followers on TikTok, earns approximately US$259,000 per video, with annual earnings estimated at nearly US$18 million.
However, concerns regarding TikTok’s data practices have prompted US lawmakers to express apprehensions about the potential for the Chinese Government to influence data collection and content recommendations on the platform. In response, US President Joe Biden signed legislation on April 24, 2024 that would lead to a ban on TikTok unless ByteDance sells the app to an American company. The earliest potential date for the ban to take effect, if the sale does not occur, is January 19, 2025, with a possibility of an additional 90-day extension.
A TikTok ban would result in the app being removed from platforms like Apple and Google, preventing new downloads and updates for existing users. While current users may still access the app for a time, this would significantly impact content creators and influencers, particularly those in Jamaica and other regions where they rely on TikTok for income. They may need to seek alternative revenue sources until the situation is resolved.
The global economic landscape is preparing for a possible revival of former President Donald Trump’s policies, commonly dubbed as Trump 2.0. This anticipated shift in economic strategy is poised to emphasise a series of bold and aggressive trade tariffs on a broad array of goods imported into the US. Such tariffs are designed with the primary objective of safeguarding domestic industries, particularly those that have struggled to compete against cheaper foreign imports.
However, this approach is likely to produce a complex array of consequences. While it may bolster certain American sectors in the short term, implementing these tariffs could ignite tensions with key trade partners. Already, countries to be affected by these tariffs have signalled retaliation with their own trade measures, leading to a potential escalation in trade wars.
Furthermore, consumers in the US could face increased prices on everyday goods, as manufacturers may pass on the costs associated with these tariffs. The balance between protectionism and global cooperation will be a critical consideration as the economic ramifications unfold.
In addition to tariff measures, Trump has articulated a bold plan that includes mass deportations of immigrant labourers who have historically filled lower-paying jobs across various sectors. This initiative aligns with his vision to reinstate manufacturing jobs for American workers, suggesting a shift in labour dynamics that could drastically alter the workforce landscape. The combined implications of these policies signal a move towards prioritising American employment, potentially disrupting established economic patterns and international trade relationships.
It is unequivocally impossible to replace this production capacity overnight, and many North Americans fail to grasp the extent to which their lives are built upon Asia’s unmatched manufacturing scale, innovation, and efficiency.
Take, for instance, the leading television set producers and their component manufacturers, most of which are concentrated in Asia. Samsung, the dominant force in television production, operates from its headquarters in South Korea, while China churns out over 400 million television sets each year. China represents nearly 32 per cemt of global manufacturing output, in stark contrast to the US, which now accounts for only about half of that. Furthermore, even though the US stock markets are undeniably booming, hitting record highs month after month, there are significant warning signs on the horizon. This surge is predominantly driven by the so-called “magnificent seven” stocks — Google, META, Amazon, Nvidia, Microsoft, Tesla, and Apple. Yet, Wall Street strategists are clearly identifying early cracks in this boom. Analysis reveals that the majority of stocks have been sidelined while it is the tech giants that create an illusion of widespread prosperity.
As we anticipate the specific tariff rates to be introduced after President Trump takes office, we must remain alert. The reality is that the US economy may not be as robust as it seems, despite the record-low unemployment. The reality is that most Americans live within five miles of a Dollar General, Dollar Tree, or Family Dollar. These stores play a crucial role, especially in rural areas where shopping access is limited. However, we cannot ignore the alarming trends as these Dollar retailers signal declining consumer spending.
Economists overwhelmingly predict that Trump’s tariff policies will lead to increased inflation across the US. This will inevitably restrict disposable income, leaving people with even less to spend. The potential decrease in purchasing power among Americans and the diaspora will significantly impact discretionary spending on travel and diminish remittance flows to Jamaica.
Given that remittances and tourism are our most vital foreign exchange earners, any reduction in these inflows puts our exchange rate in jeopardy. The choices we make now will profoundly impact the future, influencing the developments that lie ahead. The stakes are at an all-time high, and we must approach this moment with serious deliberation and proactive engagement, both individually and on a national level.
With our general election also approaching in 2025, we need to confront the new year with determined preparation. We cannot afford to underestimate the gravity of our situation.