U.S. Commerce Secretary Howard Lutnick said Thursday that TikTok may be forced to cease operations in the United States if the Chinese government does not approve a deal for the sale of the popular video-sharing app, which boasts around 170 million American users.
Speaking on CNBC, Lutnick underscored the U.S. government’s position that control over TikTok’s algorithm and technology must rest with American entities. He emphasized that even if the Chinese parent company, ByteDance, retains a minimal stake, the core operations and data infrastructure must be American-owned.
“China can have a little piece, or ByteDance, the current owner, can keep a little piece. But basically, Americans will have control. Americans will own the technology, and Americans will control the algorithm,” Lutnick said.
Clock Ticking on TikTok: September 17 Deadline
Lutnick’s comments come amid renewed uncertainty surrounding TikTok’s U.S. future. In June, former President Donald Trump—who returned to office in 2025—extended the divestment deadline by 90 days to September 17, citing the need for final negotiations. This follows a 2024 law mandating ByteDance to sell TikTok’s U.S. assets or face a nationwide shutdown if substantial progress toward divestment was not achieved by January 19, 2025.
So far, that progress has stalled. A proposed deal earlier this year that would have spun off TikTok’s U.S. business into a new American-owned company collapsed after China signaled its opposition, particularly in the wake of escalating trade tensions and the Trump administration’s new tariffs on Chinese imports.
Algorithm at the Heart of the Debate
At the center of the dispute is TikTok’s proprietary algorithm, which determines how content is curated and recommended to users. U.S. officials view the algorithm as a potential national security threat if controlled by a foreign adversary, while Chinese regulators consider it part of the country’s export-restricted technologies.
Lutnick made it clear that the algorithm must be transferred to U.S. ownership as part of any acceptable divestment agreement.
“If that deal gets approved by the Chinese, then that deal will happen. If they don’t approve it, then TikTok is going to go dark, and those decisions are coming very soon,” Lutnick added.
TikTok and ByteDance have yet to respond publicly to Lutnick’s latest remarks.
TikTok Caught in the Crossfire of U.S.-China Tech Tensions
The mounting pressure on TikTok reflects broader geopolitical tensions between the U.S. and China, particularly over technology, data privacy, and digital sovereignty. The Biden administration had also sought stricter guardrails around TikTok’s data practices, but the Trump administration’s return has revived calls for an outright divestment or ban.
TikTok has consistently argued that its U.S. operations are firewalled from its Chinese parent company, and that user data is stored in American-based servers. However, this has done little to ease bipartisan concerns in Washington over foreign influence and access to sensitive user data.
What Comes Next?
With just weeks left before the September 17 deadline, the future of TikTok in the U.S. remains deeply uncertain. If China refuses to approve a sale that gives American investors full control over TikTok’s U.S. operations, millions of users could lose access to the platform overnight.
The outcome will hinge not only on negotiations between ByteDance and potential American buyers, but also on whether Beijing is willing to compromise in a high-stakes battle over data, digital influence, and cross-border tech ownership.