US TikTok Off to Rocky Start & Americans Think the Economy Stinks

What It Covers

Morning Brew Daily examines plummeting consumer confidence hitting pandemic lows despite economic recovery, TikTok US experiencing technical failures and user exodus after joint venture launch, the EU-India trade agreement covering 2 billion people as nations reduce US dependence, and Southwest Airlines abandoning its signature open boarding system after fifty years.

Key Questions Answered

• •Consumer Sentiment Collapse: The consumer confidence index dropped 10 points to its lowest since 2014, falling below pandemic levels when unemployment neared 15%. Over 55% of respondents report difficulty finding jobs, the highest since COVID, while only 23.9% say jobs are plentiful, down from 27.5% in December. References to inflation, tariffs, trade politics, and healthcare costs all increased significantly in January surveys.
• •One-Legged Economy: The US economy relies on narrow support across sectors rather than broad-based growth. Healthcare drives most labor market gains while wealthy consumers fuel spending growth. Airlines generate most revenue from first-class passengers. GDP projections show 4-5% growth driven primarily by AI investment in data centers, not diversified business spending, creating widespread economic uncertainty despite positive headline numbers.
• •TikTok Technical Crisis: After launching as a US joint venture, TikTok experienced cascading system failures blamed on Oracle data center outages. Users reported videos flagged as ineligible, posts showing zero views, and DMs failing to send. App deletions surged 150% over five days. TikTok dropped from the top 25 free apps while competitor Upscrolled reached number two, demonstrating rapid user migration away from the platform.
• •Global Trade Realignment: The EU-India agreement eliminates tariffs on 97% of traded goods, projected to double EU exports to India by 2032 and save European firms €4 billion. India reduces car tariffs from 110% to 10% and alcohol tariffs from 150% to 20%. This follows Trump's 50% tariff on India and 15% on Europe, accelerating middle power nations forming alternative trading partnerships outside US dependence.
• •Healthcare Stock Collapse: Medicare Advantage insurers lost nearly $100 billion in market cap after the government proposed 2027 rate increases of just 0.09% versus Wall Street expectations of 5%. UnitedHealth dropped 20%, Humana fell 21%, CVS declined 14%. Medicare Advantage generates over $500 billion annually for insurers. The industry will launch intensive lobbying campaigns over the next 90 days before rates are finalized, likely featuring senior citizens in advertisements.