TikTok could be forced to stop operating in the United States if China does not approve a deal for the sale of its U.S. operations, Commerce Secretary Howard Lutnick said on Thursday.
The short video app, owned by China-based ByteDance, is used by about 170 million Americans.
Lutnick told CNBC that the U.S. must control the algorithm behind the platform. “Americans will own the technology, and Americans will control the algorithm,” he said. He added that China or ByteDance could retain a small stake, but the majority must be under American control.
President Donald Trump extended the deadline for ByteDance to sell TikTok’s U.S. assets by 90 days to September 17. The original law required a sale or shutdown by January 19, 2025, unless there was major progress.
The administration has now granted three extensions.
A potential deal earlier this year aimed to spin off TikTok’s U.S. business into a new, U.S.-based company controlled by American investors. The deal stalled after China signalled it would not approve it, following Trump’s announcement of new tariffs on Chinese goods.
Lutnick said the deal could move forward if China gives the green light. “If they don’t approve it, then TikTok is going to go dark,” he said.
Attorney General Pam Bondi recently informed companies such as Apple and Google that the Justice Department was giving up any legal claims against them related to TikTok. The letter said a sudden shutdown would interfere with Trump’s handling of national security and foreign affairs.
Some Democratic lawmakers have questioned Trump’s authority to extend the deadline and argued that the proposed deal may not meet legal standards.
