An executive order by the US President found that there is “credible evidence that leads me to believe that ByteDance … might take action that threatens to impair the national security of the United States”.
Last week, Trump called the popular apps TikTok and WeChat as threats to US national security, foreign policy, and the economy.
Although he ordered sweeping bans on dealings with the Chinese owners of the two apps, the bans have been vague.
It remains unclear what the TikTok orders mean for the app’s 100 million US users, many of them teenagers or young adults who use it to post and watch short-form videos.
Trump on Friday also ordered ByteDance to divest itself of "any data obtained or derived" from TikTok users in the US.
Microsoft is in talks to buy parts of TikTok.
White House Press Secretary Kayleigh McEnany defended Trump’s earlier TikTok and WeChat orders Thursday, telling reporters he was exercising his emergency authority under a 1977 law enabling the president to regulate international commerce to address unusual threats.