So just like China right? Trade policies is one of the few places where eye-for-an-eye retaliation makes sense.
That's probably not going to be an issue unless US starts banning apps for no apparent reason (eg. forcing spotify to sell their American operations). For now the administration (regardless of their actual motives) can plausibly say that it was done in retaliation, which makes it look more acceptable to third parties.
If you owned a coffee chain across the country and some counties police took extortion money to "protect" your assets or forced you to "sell" your operations to local goons, would any other business observing this ever open more businesses in those mafioso counties?