TikTok, the popular video-sharing app with more than 170 million American users, is now on the verge of being banned in the United States. According to Commerce Secretary Howard Lutnick, the app will “go dark” if China does not agree to a deal that would give U.S.-based investors majority ownership and control over the app and its algorithm.

Speaking to CNBC’s Squawk on the Street, Lutnick made the situation clear. “We’ve made the decision. You can’t have Chinese control and have something on 100 million American phones. That’s just not OK.” He said that under the new deal, “Basically, Americans will have control. Americans will own the technology. Americans will control the algorithm.” Lutnick added that China could retain a small stake through ByteDance, the app’s parent company, but not enough to maintain influence.

Why the U.S. Wants Control Over TikTok

The push to force a sale of TikTok’s U.S. operations began in 2024, when Congress passed a bipartisan law requiring ByteDance to divest its ownership or face a nationwide ban. Lawmakers and national security officials have long expressed concern that ByteDance, which is based in Beijing, is subject to Chinese laws requiring companies to cooperate with government intelligence efforts. This means the Chinese Communist Party could demand user data or influence the content American users see.

The law took effect on January 19, 2025. It prohibits American companies from distributing or hosting any app that is controlled by entities in countries labeled as foreign adversaries, including China. Under this rule, ByteDance’s 20 percent ownership by its Chinese founders, as well as additional ownership by global investors and employees, became a legal concern.

President Donald Trump, who took office the day after the law went into effect, has since issued three executive orders delaying its enforcement. The current deadline for ByteDance to finalize a deal is September 17, 2025. After that, if no agreement is reached, TikTok will be banned from operating in the United States.

President Trump has made it clear that he does not want to ban TikTok outright but insists that it must be under American control. In a recent interview with Fox News, Trump said he had identified “very, very wealthy people” who are ready to buy the app. However, he admitted that China must approve the deal for it to move forward. “I think I’ll need, probably, China’s approval, and I think President Xi will probably do it,” Trump said. He did not name the potential buyers but said he would reveal them in the near future.

Earlier this month, Reuters reported that the private equity firm Blackstone had dropped out of a consortium that was considering a bid for TikTok’s U.S. operations. Despite that, Trump told Fox News the deal was still alive and waiting on China’s approval. Lutnick confirmed this, saying, “The deal is over to them right now. If they don’t approve it, then TikTok is going to go dark.”

Security Risks and the Fight Over Data

Many U.S. officials see TikTok as a potential tool for espionage or information warfare. They are especially worried about the app’s powerful algorithm, which can shape the content users see and influence public opinion. Critics say this gives China the ability to push propaganda or suppress dissenting voices in a subtle but powerful way.

Lutnick addressed this concern directly, stating, “It’s got to come out of Chinese control. That’s just not OK.” He also pointed out that the goal is not to shut down the app but to protect American users from foreign influence. “That’s something Donald Trump is willing to do,” he said. “He wants TikTok to stay. But he wants it to be safe.”

ByteDance, for its part, insists that it is not controlled by the Chinese government. At a congressional hearing in 2023, TikTok CEO Shou Zi Chew said, “ByteDance is not owned or controlled by the Chinese government.” He added that there is an “inaccurate belief” that the company shares information with Beijing. “This is emphatically untrue,” Chew told lawmakers.

Still, U.S. law does not require proof of wrongdoing to take action. The law is based on potential risk, and lawmakers say they cannot take chances when it comes to national security.

What Happens If the Deadline Passes

If a deal is not approved by September 17, the consequences will be swift. App stores like Apple and Google will be ordered to remove TikTok from their platforms. U.S. companies that support the app through cloud hosting or infrastructure will be required to cut ties. The app would become inaccessible to new users and eventually stop working for existing users as updates are blocked.

“There will be no more extensions,” Lutnick said. “If China doesn’t approve the deal, then TikTok is going to go dark.” He also stated that TikTok is not officially part of broader trade talks with China, but admitted that “unofficially,” it is hard to avoid the topic in diplomatic discussions.

White House Press Secretary Karoline Leavitt echoed these concerns in June, saying that President Trump’s “main goal” is to keep TikTok available while also “protecting Americans’ privacy and security.”

The Biden administration originally signed the divest-or-ban law in 2024, but chose not to enforce it before leaving office. President Trump took over the process, attempting to walk a fine line between allowing TikTok to continue and protecting national interests. His repeated extensions suggest he is trying to give diplomacy and deal-making a chance. But with the September 17 deadline fast approaching, that window is closing quickly.

Commerce Secretary Lutnick’s message was clear and final: TikTok’s future in the U.S. now rests with China. If they refuse to cooperate, millions of American users will soon find the app shut down. “We’ve made the decision,” Lutnick said. “Now it’s up to them.”