Trump's demand that the US get a cut of TikTok's sale could set a dangerous precedent - CNN

However, "to require that part of the consideration ByteDance is getting from selling its business go to the US government, I think that's an overreach."

Trump said he would seek a "very large percentage" of any deal, which could be a substantial amount given TikTok's estimated valuation of $50 billion by some investors.

The TikTok saga could also scuttle potential future deals in a tech industry already under scrutiny.

"The recent events around TikTok will change the way we look at companies that are based in China or have interest in expanding to China, which is often one of the most interesting markets to expand into from the US," said Mike Jones, co-founder and managing partner at Science Inc, a Los Angeles-based incubator and tech studio that's backed companies such as Dollar Shave Club and Bird.

"The recent developments give us pause and change the way we think about company growth and development when the government could block them from crossing into markets," Jones added.

"I'm not sure anybody could oppose it readily if the party involved here agrees to it." (Chinese state-run media this week slammed the US moves and said China will "by no means accept" the "theft" of TikTok.)

It's a slippery slope with the potential to fundamentally change how business is done in the United States.