TikTok Negotiation, US-China Trade Fallout & its Implications for Marketers

Overview

• Trump’s reintroduced tariffs on Chinese trade have caused China to reject the proposed TikTok deal, further complicating negotiations.
• Instagram is making a strategic push to attract TikTok creators by promoting stability, tools, and monetisation opportunities.
• House of Marketers Insights on what this program means for creators and marketers.

As TikTok faces another turbulent chapter in its U.S. future, Meta is making its move.

In a bold attempt to capitalise on growing concerns around TikTok’s legal status, Meta is stepping up efforts to lure creators onto Instagram. With U.S.–China trade tensions escalating and a critical TikTok sell-off deal hanging by a thread, creators and marketers alike are weighing their options — and Instagram is working hard to look like the safest bet.

Read more about the TikTok Ban Timeline and all the updates here.

What’s Next for TikTok? 

The latest twist in TikTok’s U.S. saga came with President Trump’s announcement of a 75-day extension — giving ByteDance, TikTok’s parent company, a final window to strike a deal that satisfies both U.S. security concerns and Chinese law.

“We have made tremendous progress,” Trump shared on Truth Social. “The Deal requires more work… which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days.”

Source: TruthSocial

This follows a rollercoaster negotiation, where the proposed U.S. deal involved spinning off TikTok’s U.S. operations into a separate, American-owned entity. ByteDance would retain a minority stake, and the U.S. would gain access to TikTok’s technology through a licensed agreement, not full ownership. While this arrangement aimed to satisfy the “Protecting Americans from Foreign Adversary Controlled Applications Act,” it still hinges on China’s approval, particularly regarding TikTok’s algorithm — the engine behind the platform’s addictive recommendation system.

But with Trump reintroducing sweeping tariffs on Chinese trade, China has pushed back — reportedly withdrawing support for the deal in protest. This geopolitical tension leaves TikTok’s fate in a legal grey zone. Although the sell-off bill has already been signed into law, enforcement is currently paused by executive order. Still, the platform’s long-term viability is far from secure.

As of now, TikTok remains live in the U.S. — but the countdown to a hard deadline is very real.

What The US Tariffs Means for Creators and Marketers

For TikTok creators in the U.S., the landscape is shifting fast. Faced with legal ambiguity and fears of platform instability, many are exploring their options. 

For brands that rely on creator partnerships and community-driven content, this shift matters. Creators are the lifeblood of modern marketing, and where they go, attention follows.

Meta sees this moment as a turning point. Instagram is now positioning itself as a stable, creator-first alternative.

Instagram’s Strategic Moves

To capture this wave of creator migration, Meta is implementing several timely updates and tactical plays designed to appeal to TikTok talent.

• iPad App in Development
  After years of holding out, Instagram is finally developing an iPad app — a direct response to TikTok’s dominance on the device. This move opens up a new subset of users and gives creators more flexibility in how they work and engage.
• Upgraded Search & Discovery Tools
  Instagram is also overhauling its search functionality, aiming to surface relevant content more intelligently.

“We’re starting to invest more in search… it should allow content to resurface, so you don’t get all the value in those first 24 to 48 hours,” said Instagram head Adam Mosseri.
The shift reflects TikTok’s edge in discovery, where advanced entity detection helps connect users to content even when it’s not directly tagged or captioned. Instagram’s updates signal a commitment to smarter, longer-lasting content discovery.

• Revenue Incentives for Creators
  Perhaps most crucially, Meta has been offering financial incentives, promotional support, and increased visibility to TikTok creators willing to make the leap.

This multi-pronged strategy shows just how seriously Meta is taking the current moment. It’s not just about winning creators — it’s about becoming the default platform if TikTok falters.

Moving to Instagram is a Safe Choice for Marketers

Instagram may not be a like-for-like replacement for TikTok’s culture, but it offers an increasingly familiar toolkit. Between Reels, better discovery, and deeper brand integrations, Instagram is making it easier for marketers to plug into creator ecosystems without skipping a beat.

With TikTok’s U.S. operations clouded by legal, political, and regulatory headwinds, betting on Meta may prove to be a timely move for brands looking to future-proof their campaigns.

House of Marketers Insight

At House of Marketers, we’re watching this playbook unfold in real time — and we believe now is the time for smart brands to adapt.

While creators weigh their platform loyalty, marketers should be just as agile. The potential ban of TikTok — even if delayed — sends a strong signal: diversify your content strategy.

From our perspective, marketers who move quickly will gain access to emerging talent, reduced competition, and early-mover advantage on features designed for conversion.

As the social media landscape shifts, brands need a helpful multipronged approach to stay ahead. At House of Marketers, we help businesses craft impactful influencer marketing campaigns across TikTok, Instagram, and Facebook. Contact House of Marketers today and future-proof your marketing strategy today!