they're literally just forcing them to build datacenters to keep the data for Americans in America (and Indians in India, etc).
TikTok is already publicly hiring a ton of people for this
Once the data doesn't leave America this is going to go away.
This is not that much different than just complying with the type of regulations the EU has.
The American version is just involving a lot more chest pounding and fluff because there's no existing laws to enforce to make them do this. So they just have to do it through threats and relatively minor policy changes (like banning on government phones).