TikTok Faces U.S. Ban if China Rejects Asset Sale Deal, Says Lutnick

The future of TikTok in the United States hinges on China’s approval of a U.S.-drafted deal to sell the app’s American assets, Commerce Secretary Howard Lutnick stated during a CNBC interview on July 24.

Lutnick warned that if Chinese authorities refuse to greenlight the deal, TikTok will "go dark" in the U.S., similar to its brief shutdown earlier this year.

“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,” Lutnick said. “Those decisions are coming very soon, so let's see what the Chinese do. The deal is over to them right now.”

Trade Talks and TikTok

When asked whether the potential agreement is part of ongoing trade discussions with China, Lutnick noted that while it is not officially included, it inevitably surfaces during talks.

“You can't really go meet somebody and not bring up the topics that are open,” he explained.

Neither TikTok nor the White House responded to USA TODAY’s requests for comment on July 24.

Deadline Looms for TikTok Sale

The next deadline for TikTok’s U.S. asset sale is September 17. Former President Donald Trump extended this deadline in June through an executive order, marking the third such extension.

Why is TikTok at Risk of a Ban?

Concerns about TikTok’s ties to Beijing-based ByteDance have raised ongoing national security fears, with U.S. officials suspecting that user data could be shared with the Chinese government — an allegation TikTok denies.

Earlier this year, TikTok briefly went offline in the U.S. for less than 24 hours following federal legislation signed by former President Joe Biden. Trump, however, continues to play a role by issuing executive orders to delay the ban, stating that negotiations with China are progressing.

In early July, Trump expressed optimism about a deal, saying he hoped Chinese President Xi Jinping would approve the sale of TikTok to the U.S.