The US just came to an agreement with TikTok’s parent company, ByteDance, to allow TikTok to continue operations in the US under the Foreign Adversary Controlled Applications Act, passed by the Supreme Court in 2024. With this, new provisions and expectations are on the horizon for American users, content creators, and brands.
The Big Shift: What the New U.S. TikTok Actually Is
TikTok will remain accessible to Americans through a new joint venture between the U.S. and ByteDance, named TikTok USDS Joint Venture LLC, designed to retain American user data with majority ownership by non-Chinese entities. Previously, in 2025, TikTok was briefly banned for American users for its violation of the Foreign Adversary Controlled Applications Act, a bipartisan ruling aiming to protect Americans’ user data from foreign oversight. In the new TikTok USDS joint venture, ByteDance only holds 19.9% ownership; while this severely reduces ByteDance ownership influence in the U.S. market, it doesn’t eliminate it completely. As of now, TikTok U.S. data, including user information and algorithms, will be stored and managed by tech partner Oracle in their new U.S. cloud environment separately from ByteDance’s data storage for global users. Questions surrounding future content segmentation and global reach, especially for content creators and advertisers who use TikTok as part of their business strategy, remain unanswered currently. Despite the uncertainty, the deal is designed to integrate seamlessly into the U.S. user experience, not completely replace the current TikTok app. The TikTok USDS understands that with over 200 million U.S. users, forcing migration to a new app would be unrealistic.
What We Can Expect: Algorithm, Reach & Performance Changes
While the exact TikTok algorithm changes are unclear, user experience may shift subtly as it begins to aggregate from the U.S. data pool. There is likely to be less international influence in training the algorithms, resulting in more content reflective of American-driven trends, with the expectation for the TikTok U.S. feed to feel a little more local. As the new U.S. algorithm takes shape and learns from U.S. user behavior, short-term instability is likely for content creators and advertisers. Metrics such as content creator reach, views, and unpredictable audience targeting may fluctuate, in addition to repetitive or old content recommendations cluttering the FYP for all users. This calibration period is normal for major algorithm and platform changes and is likely to stabilize over time. These initial shifts should not, according to current statements, remove global discoverability for American-based creators and advertisers, who cite they are still able to be globally discoverable. The largest potential change long-term will be prioritizing domestic content over international visibility. For content creators who rely heavily on their domestic audiences, this may boost long-term visibility; alternatively, creators who rely on international niches may find growth slowing down in the coming months and may opt to diversify content streams. Additionally, advertisers may experience short-term targeting inconsistencies and may need to restructure user-generated content key performance indicators to compensate for these shifts.
What This Means for Global Creators & Cross-Border Brands
U.S. creators and brands aren’t the only entities concerned over American data being segmented away from TikTok’s global database. Global creators worry U.S. changes may result in fragmentation of TikTok’s global feed, impacting their global TikTok reach in ways that are hard to predict. Brands and advertisers across regions, particularly those experiencing international creator impact, may need to shift expectations around campaign reach, conversions, and success, especially those who market heavily to American consumers. Global brands and creators whose main source of marketing is on TikTok may need to migrate and diversify onto different platforms (such as Instagram Reels, YouTube Shorts, etc.) if they wish to maintain the brand visibility TikTok once provided to U.S. consumers. Irrespective of these concerns, the U.S. remains TikTok’s largest global market, making stability a priority for ByteDance; their minority ownership may help maintain continuity of global operations, in spite of the changes occurring in the U.S.
TikTok’s Updated Terms of Service
The U.S. TikTok Terms of Service were updated as the deal closed on Thursday, January 22, 2026. The platform now explicitly states the U.S. entity does not endorse any content. This signifies a move to distance themselves from liability surrounding what content is produced and popularized. Additionally, users, creators, and brands must acknowledge the risks and limitations of using generative AI. This includes consequences for AI potentially generating inaccurate, misleading, or legally liable outputs. For creators and brands, this provision addressing generative AI risks could increase legal exposure and affect professional relationships built on the platform.
Additionally, children under the age of 13 are now explicitly prohibited from using the platform under the new under-13 restrictions, which is directly in response to growing concerns for accessibility to children and age appropriateness on TikTok. This addition to the TOS appears to also shift liability away from TikTok for all content produced and recommendations by the algorithm. With this, American creators and brands may hold increased responsibility for accuracy, compliance, and brand safety.
What Should Creators and Advertisers Do Next?
Uncertainty is dominating the conversation online, but that doesn’t mean proactive steps shouldn’t be taken to protect your TikTok strategy from volatile shifts. Creators and advertisers should monitor analytics closely as the new system and algorithms re-calibrate. It’s also a good idea to diversify your presence: build email lists, establish a multi-platform presence, and contact your online community to ensure all of your target audience can access you. Contractually, creators and advertisers should revisit contracts to ensure performance-based compensation accounts for any algorithm instability. While this shift may not completely end accountability from contractual obligations, having open conversations can allow for stronger partnerships and business relations.
Regardless, during this time, creators and advertisers should consult with an entertainment lawyer to understand their risks and recourses if obligations aren’t met. Protect your creative business and speak with a member of our team today to learn your options.
Contributions to this blog by Anastasia Pedraza.