TikTok Developing New U.S.-Only App as Trump Signals Sale Deal Is Close

ByteDance is developing a new version of TikTok exclusively for users in the United States as federal deadlines draw closer and political pressure intensifies. The new app is expected to launch in American app stores on September 5, 2025, with a transitional period ending in early 2026, according to sources familiar with the company’s internal timeline.

This move comes in direct response to a 2024 U.S. law that prohibits the operation of TikTok under Chinese ownership. The law, signed by President Joe Biden, mandates that ByteDance must sell TikTok’s American business to a U.S.-based or allied entity by January 19, 2025. Without a completed sale, TikTok will be blocked from app stores and U.S. cloud services, effectively banning the app across the country.

President Donald Trump, who has extended the enforcement deadline three times through executive orders, most recently pushed the date to September 17, 2025. Speaking to reporters aboard Air Force One on July 4, Trump said a deal to sell TikTok’s U.S. operations is “pretty much” complete. He confirmed that additional discussions with Chinese officials were scheduled for the week of July 8 and noted that a final agreement may require approval from Chinese President Xi Jinping.

TikTok, which has more than 150 million active users in the United States, is a major player in the social media space. ByteDance’s plan to release a localized version of the app reflects both the commercial value of retaining its U.S. audience and the growing complexity of regulatory compliance.

The new app, known internally as M2, is designed to operate independently from the global version. ByteDance is expected to support the migration of existing U.S. users to the platform once it becomes available.

While no sale has been officially announced, several high-profile names have expressed interest in acquiring TikTok’s U.S. business. Tech investor Frank McCourt Jr. has been involved in discussions, alongside figures such as Oracle co-founder Larry Ellison and Microsoft. A prior proposal reportedly outlined a deal in which ByteDance would retain a minority stake, but no final terms have been made public. Any agreement would require approval not just from the U.S. government, but also from Chinese regulators, who have grown increasingly cautious amid trade tensions.

In recent years, U.S. lawmakers have repeatedly raised concerns about TikTok’s ownership structure, warning that data from American users could be accessed by the Chinese government or manipulated to influence public opinion. Although ByteDance has denied any misuse of user information, the U.S. Supreme Court ruled in June 2025 that the government was within its rights to enforce the divestment order, citing national security as a legitimate concern.

ByteDance has made previous efforts to address regulatory worries by shifting U.S. user data to domestic servers managed by Oracle, but those measures have not satisfied legal requirements. Under the current law, only a complete change in ownership will prevent the app from being removed from U.S. platforms.

The launch of the new app is likely to be a critical step in TikTok’s future in the United States. ByteDance will need to demonstrate that it can separate the American version of the platform from its international infrastructure, both in terms of data handling and corporate control. Whether the effort is enough to meet federal standards will depend on how the pending acquisition is structured and approved.

If no agreement is reached, the app will be banned from major U.S. digital platforms, cutting off millions of users and reshaping the country’s social media landscape. If the sale moves forward and the new app is deemed compliant, TikTok could retain its presence in one of its largest and most profitable markets—albeit under very different terms than before.

Also Read: Trump Gives TikTok 75-Day Lifeline to Finalize U.S. Deal and Avoid Ban