WSJ Tech News Briefing: "Trump Plays Dealmaker in Chief in TikTok Talks"
Released on February 11, 2025
Hosted by Julie Chang, The Wall Street Journal

Introduction

In the February 11, 2025 episode of WSJ Tech News Briefing, host Julie Chang delves into two major topics dominating the tech landscape: Apple's innovative use of its AirPods Pro 2 as hearing aids and the evolving saga of TikTok's future in the United States, with former President Donald Trump emerging as a pivotal dealmaker in the negotiations.

Apple's AirPods Pro 2: A Game Changer in Hearing Aids

Overview

Apple has significantly advanced its position in the healthcare sector by transforming its AirPods Pro 2 into clinical-grade hearing aids. This feature aims to assist millions with mild to moderate hearing loss, offering a more affordable and accessible alternative to traditional hearing aids.

Cost Advantages

Nicole Nguyen, WSJ's personal tech columnist, and Pierre Biennime discuss the financial implications of this development. Traditionally, hearing aids range from several hundred to several thousand dollars, with high-end models requiring professional fittings and appointments.

Pierre Biennime [02:19]: "On the cost front then Apple has an advantage definitely."

Pros and Cons

While Apple's offering provides a cost-effective solution, there are notable drawbacks:

• Pros:

  • Affordability: At approximately $249, AirPods Pro 2 are a fraction of the cost of traditional hearing aids.
  • Convenience: Users can perform hearing tests via their phones without needing an audiologist.

• Cons:

  • Physical Limitations: Older users reported that AirPods tend to fall out easily, causing inconvenience and potential loss.
  • Battery Life: The AirPods Pro 2 offer around six hours of use, compared to 12-16 hours typically available in conventional hearing aids.
  • User Interface: Adjusting settings requires navigating a hidden menu, which can be challenging for some users.
  • Durability: Frequent handling and the need to manage the case's open/close mechanism can be troublesome.

Pierre Biennime [03:22]: "The AirPods have a tendency to fall out... it's very inconvenient if you're talking to someone and an earbud drops."

FDA Approval and Market Impact

The FDA's 2022 decision to allow over-the-counter hearing aids paved the way for Apple's entry into this market. However, the feature is only suitable for those with mild to moderate hearing loss.

Pierre Biennime [02:52]: "Apple, using these guidelines, released the software update last fall... if you have severe hearing loss then these hearing aids will not work for you."

Conclusion

While Apple's AirPods Pro 2 present an innovative and affordable option for those with certain levels of hearing loss, they complement rather than replace professional hearing aids, particularly for users requiring continuous, all-day assistance.

TikTok's Future in the U.S.: Trump as Dealmaker in Chief

Current Status of TikTok in the U.S.

TikTok remains accessible to existing users in the U.S., but new downloads are suspended under a 75-day stay implemented by former President Donald Trump to negotiate the app's future.

Julie Chang [06:55]: "So right now, if you have downloaded the app in the U.S. if you're a U.S. user, you can continue to use TikTok because President Trump has issued a 75 day stay to figure out this whole situation."

Government Concerns and TikTok's Response

The U.S. government's primary concern revolves around Chinese ownership by ByteDance and the potential misuse of user data for espionage or propaganda.

Jessica Tonkle [07:17]: "The US government is concerned about the Chinese ownership of TikTok... that user data would get into the wrong hands."

TikTok has dismissed these concerns, asserting that data security is not an issue.

Jessica Tonkle [07:46]: "TikTok has said that it is not a concern and has basically dismissed all of these concerns and said this is not an issue."

Potential Solutions and Buyers

Trump has floated the idea of selling TikTok's U.S. operations to an American tech company. Potential buyers mentioned include Oracle and Elon Musk, though Musk has expressed disinterest.

Jessica Tonkle [08:03]: "President Trump has suggested many possible buyers... Elon has since said he is not interested in buying TikTok."

However, TikTok officials have stated that selling the U.S. operations would render the app non-functional.

Julie Chang [08:39]: "TikTok US cannot be acquired for the simple reason that it would cease to exist."

Trump's Evolving Role

Interestingly, Trump's stance has shifted from attempting to ban TikTok in 2020 to now seeking its preservation, possibly recognizing the platform's influence on his popularity, especially among younger voters.

Jessica Tonkle [09:35]: "He has realized the power of the platform for his own popularity."

Trump's direct involvement in negotiating the sale of a private company is unprecedented, blending his past business experience with his political role.

Jessica Tonkle [10:37]: "Usually TikTok would hire an investment banker to field bids... President Trump seems to have taken it upon himself a because he really does want to make sure that TikTok survives all of this."

Sovereign Wealth Fund Proposal

Trump has proposed the creation of a U.S. sovereign wealth fund to acquire TikTok, although practical implementation within the 75-day window is uncertain.

Jessica Tonkle [10:05]: "Creating a sovereign wealth fund, you have to raise money for the sovereign wealth fund. It is going to take much longer than 75 days."

Trade Relations with China

TikTok's fate is intertwined with broader U.S.-China trade relations. Discussions between Trump and Chinese leader Xi Jinping indicate that TikTok might be a component of larger trade agreements.

Jessica Tonkle [11:20]: "Maybe that includes other issues like tariffs and trade agreements."

Conclusion

The TikTok negotiations highlight a unique intersection of technology, national security, and political maneuvering. Trump's active role as a dealmaker underscores the strategic importance of TikTok within the U.S.-China trade dynamics and his efforts to maintain his political capital.

Final Thoughts

The episode sheds light on how major tech developments and geopolitical maneuvers are shaping the industry. Apple's innovative approach to healthcare tech and the high-stakes negotiations surrounding TikTok exemplify the complex interplay between technology, economics, and policy. As these stories unfold, they will continue to influence both consumer experiences and international relations.

Produced by Jess Jupiter with supervising producer Katherine Millsop. For more insights, stay tuned to WSJ Tech News Briefing.