U.S. Commerce Secretary Howard Lutnick told CNBC, "If progress is not made on the sale, TikTok will be banned from operating in the U.S."
Trump had previously mediated a sales agreement between ByteDance and U.S.-based investors. However, the U.S. side demands not only ownership transfer but also access to and control over TikTok's algorithm.
Under this plan, the U.S. would own at least 50% of TikTok, with the remaining shares split between China and ByteDance. However, technology news site ArsTechnica reported that ByteDance is reluctant to share the algorithm.
While the potential buyers proposed by Trump have not been publicly disclosed, no official announcement has been made indicating that the Chinese government or ByteDance has reviewed or decided on these parties.
The deadline set for TikTok's sale process expired in January, and when the sale did not occur, the app briefly went offline in the U.S. Trump then extended the sales deadline.
The third extension granted in June was intended to prevent a complete shutdown of TikTok's operations in the U.S. At that time, Trump claimed a "very wealthy" group of investors was preparing to buy TikTok, but the step did not happen because Chinese approval was not obtained.
The Trump administration has warned that if ByteDance and China refuse to approve the sale, TikTok could be completely banned under the "Foreign Enemy Act." This law allows the U.S. to block digital platforms owned by foreign countries from operating in the U.S. on national security grounds.
Trump's hardline stance reflects concerns both about national security and technological competition with China. TikTok's future remains uncertain.
