Trump Plays Dealmaker in Chief in TikTok Talks

Summary

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.

Transcript

[Julie Chang]

I can say to my new Samsung Galaxy S25 Ultra, hey, find a keto friendly restaurant nearby and text it to Beth and Steve.

[Jessica Tonkle]

And it does without me lifting a.

[Julie Chang]

Finger so I can get in more squats anywhere I can.

[Nicole Nguyen]

1, 2, 3 will that be cash or credit?

[Pierre Biennime]

Credit.

[Julie Chang]

4 Galaxy S25 Ultra the AI companion.

[Pierre Biennime]

That does the heavy lifting so you.

[Julie Chang]

Can do you get [e-mail] compatible with select apps.

[Pierre Biennime]

Requires Google Gemini account results may vary based on input. Check responses for accuracy.

[Julie Chang]

Welcome to Tech News briefing. It's Tuesday, February 11th. I'm Julie Chang for the Wall Street Journal. Apple's AirPods Pro 2 can be used as hearing aids we'll tell you what users have been saying about them. Plus what's next for TikTok? We'll get you caught up on the latest in the negotiations over the app's fate in the US where things stand, and what role President Trump is taking in the deal making. First up, Apple took a big step in its healthcare push last fall when it rolled out a software update that enabled a clinical grade hearing test and hearing aid capability for its AirPods Pro 2. The feature could be a game changer for millions of people who live with mild to moderate hearing loss. WSJ's personal tech columnist Nicole Nguyen spoke to people who have tested Apple's top selling headphones as hearing aids over the past several months. She sat down with my colleague Pierre Biennime to talk about some of the pros and cons. Here's their conversation.

[Nicole Nguyen]

Nicole how do people feel about AirPods Pro 2 as hearing aids?

[Pierre Biennime]

I think the big question on a lot of these folks minds was are $249 hearing aids too good to be true? Apple's AirPods Pro 2 cost about that much and hearing aids can run from several thousand dollars to several hundred dollars. Typically on the lower end of that spectrum you're buying an over the counter hearing aid and those actually see high rates of returns. On the upper end you could be paying four to six thousand dollars for hearing aids. You have to get an audiologist appointment. You have to get them professionally fit. And if your dog eats one or if you lose one, then that's not covered by health insurance and you're paying that out of pocket.

[Nicole Nguyen]

So certainly on the cost front then Apple has an advantage definitely.

[Pierre Biennime]

So for a lot of the people that we talked to, they thought just trying these earbuds as hearing aids was a no brainer. It's a low cost entry. You take the hearing test from your phone, you don't have to visit an audiologist and within minutes you can turn on a hearing aid function that's clinical grade in these earbuds.

[Nicole Nguyen]

And the FDA over opened up the market for over the counter hearing AIDS in 2022. Is that the market that Apple is walking into with this?

[Pierre Biennime]

Yes. The FDA approved the sale of over the counter earbuds that don't require the earbuds to be professionally fit or a prescription from an audiologist in 2022 as you mentioned, and Apple, using these guidelines, released the software update last fall. The feature is intended for people with mild to moderate hearing loss that applies to hundreds of millions of people around the world. But if you have severe hearing loss then these hearing aids will not work for you.

[Nicole Nguyen]

And as we were saying on the cost front, Apple's doing pretty well given that these cost a few hundred dollars as opposed to maybe several thousand. What are some other pros and cons that people have encountered?

[Pierre Biennime]

What was interesting is that most of the people that my colleague Julie Jargan and I spoke to had experienced age related hearing loss. They were a bit older and they found that a lot of the trouble with using AirPod as hearing aids had nothing to do with the hearing assistant features themselves. The AirPods had a tendency to fall out. They do come with several tip sizes, but it's very inconvenient if you're talking to someone and an earbud drops and then you have to crawl underneath the table to find it. The settings to adjust the amplification and some of the tuning in the airpods themselves are also hidden. There's a secret menu in Settings that appears once your AirPods are in your ears and connected, but you can't access that settings menu otherwise. And handling the AirPods was also troublesome for some. It's a very particular kind of open and close mechanism on the case, and it requires a lot of dexterity. And it's different for hearing aids which have a longer battery life, so you don't have to put them in and out of their case as often. Apple claims its battery life for the AirPods Pro 2 is about six hours, and that's about half the battery life that most off the shelf hearing aids offer. 12 to 16 hours is pretty normal for professionally fit hearing aids, but the cost differential there is large. But the best hearing aid is the one in your ear. For a lot of people who need 24. 7 hearing amplification, they either bought two pairs of AirPods or ended up using their professionally fit hearing aids. And for folks who just need a little bit of assistance in certain situations. The AirPods are suitable.

[Julie Chang]

That was WSJ personal tech columnist Nicole Nguyen speaking with Pierre Biennime. Coming up, when it comes to TikTok, President Trump has taken on a new role dealmaker in chief. We'll have more on that after the break.

[Jess Jupiter]

This episode is brought to you by Intuit. TurboTax didn't file with TurboTax last year. That's in the past. Now Taxes is getting the TurboTax app and filing your own taxes for free. If you didn't file with them last year, file by February 18th. All tax forms, all 100% free. Now this is taxes intuit TurboTax new filers and filers who didn't use TurboTax last year only must start and file your own taxes in app by February 18th. Excludes TurboTax Live full [e-mail].

[Julie Chang]

Real estate tycoon reality TV star now President Trump seems to have taken on a new role, investment banker as he oversees TikTok's fate in the US in public and behind the scenes, Trump has discussed possible deals to Americanize control of the China based social media app he once tried to ban. He's also tapped to Vice President J.D. vance to oversee negotiations, with the hope that Vance's background in venture capital and his Silicon Valley ties can facilitate a deal. WSJ Deputy Media Editor Jessica Tonkle has been following the story and she joins us now. Jessica, start us off with where things stand with TikTok. Do US users have access to it?

[Jessica Tonkle]

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. But if you're in the US you cannot download the app. It's not available.

[Julie Chang]

Can you remind listeners why the government is looking to ban TikTok?

[Jessica Tonkle]

The US government is concerned about the Chinese ownership of TikTok. TikTok is owned by ByteDance, a big Chinese company. And the specifically the concern is about the Chinese access to all this user data, what they could do with it, that user data would get into the wrong hands, that there could be espionage, that it could be used to spread propaganda. So these are just some of the concerns that they have.

[Julie Chang]

And what has TikTok said in response to those concerns?

[Jessica Tonkle]

TikTok has said that it is not a concern and has basically dismissed all of these concerns and said this is not an issue.

[Julie Chang]

One possible solution that President Trump has been looking into is for another tech company to bid for this platform. What exactly would this look like?

[Jessica Tonkle]

It's really interesting and it's complicated. We don't know exactly what it would look like for a US company to buy the US operations of TikTok because it's hard to understand how you can take out that business from the rest of TikTok. So it's vague, but President Trump has suggested many possible buyers that he thinks could own the US Operations. Trump has suggested that Oracle could be a buyer. He has suggested Elon Musk could be a buyer. Elon has since said he is not interested in buying TikTok. So it will be very interesting to see what happens.

[Julie Chang]

And we should note a TikTok spokesman said, quote, TikTok US cannot be acquired for the simple reason that it would cease to exist. Jessica, how has Trump's position on TikTok evolved during and since the election?

[Jessica Tonkle]

So it has been really interesting to see the president take on, as we're calling it, this dealmaker in chief role with TikTok. As we reported, according to sources familiar with the situation, before he was even elected, he'd had a meeting talking to advisors about how well he had done on TikTok. He really believes that it helped him win the youth vote. And he said, as we reported, want to save TikTok. So he's kind of taken it upon himself to be the investment banker to help gin up interest to buy the company.

[Julie Chang]

And that was a pivot from his first presidential term when he also wanted to ban TikTok.

[Jessica Tonkle]

Right. So it is a complete about face from where he was in 2020 when he said he wanted to ban TikTok. He was looking for solutions. At that time, Microsoft was interested, Walmart was interested. So it is very different. But again, he has realized the power of the platform for his own popularity.

[Julie Chang]

And last week, President Trump ordered the creation of a sovereign wealth fund. He suggested it could be used to acquire TikTok. What would this mean for TikTok's purchase?

[Jessica Tonkle]

He has suggested this idea of creating a US sovereign wealth fund. The issue is we have 75 days on TikTok right now. I mean, he could theoretically extend that. However, 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. So we're not completely sure how that would work.

[Julie Chang]

And from your reporting, President Trump has taken on a bigger role than typical for a president in the sale of a private asset. Can you tell us a bit more about that? And why that matters.

[Jessica Tonkle]

It's just super unusual to see a president take on this role. Usually TikTok would hire an investment banker to field bids and see who's interested. President Trump seems to have taken it upon himself a because he really does want to make sure that TikTok survives all of this. And remember, his past career was in real estate, and he is a business guy, and he enjoys the Art of Deal Making, the book that he himself wrote. So he's kind of like embracing what he knows and taking on that role.

[Julie Chang]

The US Is in the midst of a trade war with China. Has TikTok come up in conversation between President Trump and Chinese leader Xi Jinping?

[Jessica Tonkle]

We reported that they have spoken about it. We don't know the context. We do know that Chinese officials and members of the Trump administration have talked about TikTok. And our understanding is that there have been discussions on each side about this idea of whether this TikTok could be part of a bigger agreement between China and the U.S. and maybe that includes other issues like tariffs and trade agreements.

[Julie Chang]

All right, that was WSJ Deputy Media editor Jessica Tonkle. And that's it for Tech News Briefing. Today's show was produced by Jess Jupiter with supervising producer Katherine Millsop. I'm Julie Chang for the Wall Street Journal. We'll be back this afternoon with TNB Tech Minute. Thanks for listening.