TikTok’s fate in the United States is once again in jeopardy, as Commerce Secretary Howard Lutnick confirmed growing pressure on ByteDance to relinquish control of the platform’s American operations. 
Unless the Chinese parent company agrees to a restructuring deal that places ownership and control – especially over TikTok’s influential algorithm – into American hands, the app could be banned across the country.
In a statement on July 2025, Lutnick was blunt: “If China doesn’t approve the deal, TikTok will go dark. Americans will own the technology, and Americans will control the algorithm. ByteDance can keep a small piece, but control must shift to the U.S.”
The proposed plan involves spinning off a U.S.-based version of TikTok that would be managed and largely owned by American investors. The sticking point remains the algorithm – the powerful engine behind TikTok’s content delivery system – which the U.S. government insists must be under American control to ensure national security and data integrity.
This showdown isn’t new. A 2024 law demanded ByteDance divest TikTok’s U.S. branch or shut it down by January 19, 2025. But former President Trump extended the deadline three times, most recently to September 17. Despite these delays, progress has stalled, especially as China remains hesitant to approve any deal – a stance hardened by Trump’s recent introduction of fresh tariffs on Chinese goods.
Legal and political tensions are also rising. Some Democrats argue that Trump lacks the authority to keep extending the deadline indefinitely and question whether the current proposal satisfies the legal framework set out in 2024. Meanwhile, Attorney General Pam Bondi has offered assurances to Apple, Google, and other app hosts that they won’t face legal action from the Justice Department for continuing to support TikTok during the limbo period.
As if the situation wasn’t already uncertain, one of the major potential buyers, Blackstone, has now pulled out. The investment firm cited escalating U.S.-China trade tensions as the reason for abandoning the deal, dealing a blow to momentum toward a resolution.
With the September 17 deadline rapidly approaching and no clear breakthrough in sight, TikTok’s U.S. users – now over 170 million – could soon find their favorite app suddenly unavailable. The next few weeks may determine whether TikTok evolves under new ownership or disappears entirely from American phones.