By Kaan Yigit, principal and SVP at The Strategic Counsel

Logan Moffitt of Ottawa, famously known as the “Cucumber Guy” on TikTok, captured millions of fans with his cucumber recipe videos and now has nearly seven million followers on the platform. His success story highlights the potential for Canadian creators on TikTok, but this future is now at risk. With TikTok’s Canadian offices potentially closing, creators and small businesses that rely on the platform will face less choice and a tougher landscape, impacting livelihoods, innovation and Canada’s presence on the global social media stage. Here’s why this closure is a major blow to Canada’s creator economy and digital ecosystem.

The loss of social media jobs and Canadian advertiser autonomy

TikTok employs many people in Canada in social media management, content strategy and digital marketing. With TikTok’s offices closing, these jobs will disappear and the expertise along with it. Our social media ecosystem is not sufficiently large to absorb these losses in the short term. In addition, major Canadian brands and advertisers trying to expand their digital reach will lack the local support they need to grow and will have to reroute their business through the U.S.to reach the 16 million TikTok users in Canada. In addition, thousands of young Canadians work in roles directly or indirectly linked to TikTok, from social media managers to content strategists to video and audio support for creators. Without TikTok offices here, there’s a real risk that some of these opportunities will dwindle.

Damage to the Canadian creator economy: No Canadian creator fund

In the U.S. and the U.K., TikTok’s Creator Fund is a crucial financial support for content creators, rewarding them based on engagement and views. Canadian creators had been hoping for the same support, but with TikTok’s offices closing, a Canadian Creator Fund will likely never become a reality. For creators just starting out, or those who don’t yet have big brand deals, this fund would have provided a much-needed revenue stream. Without it, Canadian creators may be forced to cut back on content creation or look elsewhere for support, potentially taking away opportunities for new voices and perspectives to thrive on the platform.

Challenges for emerging e-commerce businesses: No TikTok shop in Canada

With TikTok Shop, users can make purchases directly from content they see on the app in the U.S. and the U.K. But for Canada, it’s a feature we may never see. Without TikTok Shop launching in Canada, small businesses and creators lose a powerful tool that could have connected them with customers more easily, affecting their growth and limiting their ability to compete.

Loss of local moderation and support for Canadian content will impact content and user experience

With no TikTok marketing and operational infrastructure in Canada, one wonders who will manage Canadian content and user concerns. Content moderation, timely feedback to user concerns or content violations and support are critical to ensuring TikTok’s platform meets local standards and resonates with Canadian audiences. Without a Canadian team to address these issues, user concerns will not be heard as clearly, and Canadian content may lack the support it needs to thrive.

Widening the creative gap with the U.S.

Canadian creators are now officially at risk of falling further behind their American counterparts. Without any support or comparable revenue sources to their U.S. or U.K. counterparts, creators here may struggle to keep pace with the U.S., diminishing the visibility and influence. There is even a chance that TikTok’s algorithm will prioritize content from larger markets, like the U.S., over Canadian content as Canadian TikTok creator output dwindles or shifts to other platforms like YouTube and Instagram