Trump Proposes U.S. Sovereign Wealth Fund, Suggests Possible TikTok Purchase
WASHINGTON, D.C. – Former President Donald Trump has signed an executive order to begin the process of creating a sovereign wealth fund for the United States, an idea he first introduced during his election campaign. While details remain unclear, Trump hinted that the fund could potentially be used to purchase TikTok, the popular Chinese-owned social media platform.
Sovereign Wealth Fund: A First for the U.S.
Sovereign wealth funds are government-owned investment funds that manage surplus revenue for long-term economic benefits. Over 90 countries, including Norway, Saudi Arabia, and China, operate such funds, often backed by profits from natural resources like oil and gas.
However, unlike these nations, the U.S. currently runs a budget deficit, raising questions about how the fund would be financed.
"We're going to create a lot of wealth for the fund," Trump told reporters. However, he did not specify where the money would come from. During his campaign, he suggested it could be funded through tariffs and other revenue-generating measures.
Trump has already introduced tariffs on imports from key trading partners, including China, Mexico, and Canada, though the levies on Mexico and Canada were recently paused for 30 days.
Funding Strategy and Investment Plans
U.S. Treasury Secretary Scott Bessent stated that the sovereign wealth fund would be established within the next 12 months. The administration aims to monetize existing government assets to generate revenue for the fund, though specifics remain vague.
Trump previously said that the fund would help finance major infrastructure projects, including roads, airports, and medical research.
Could the Fund Buy TikTok?
While discussing the new initiative, Trump suggested that the sovereign wealth fund might be used to acquire TikTok. The social media platform has faced ongoing scrutiny over national security concerns, and the previous administration had attempted to force its Chinese owner, ByteDance, to sell its U.S. operations or face a ban.
Last month, TikTok was briefly taken offline in the U.S., sparking backlash from its users. Trump later delayed the ban, promising to find a more favorable solution.
"We're going to be doing something, perhaps with TikTok, and perhaps not," Trump said. "If we make the right deal, we'll do it. Otherwise, we won’t... we might put that in the sovereign wealth fund."
Tech Giants Eyeing TikTok
Trump has also acknowledged that Microsoft has been in discussions to purchase TikTok, adding that he would prefer a “bidding war” over the platform’s sale. Other prominent tech figures, including Larry Ellison and Elon Musk, have also been mentioned as potential buyers.
While the sovereign wealth fund is still in its early stages, its potential role in acquiring a major social media company adds another layer of uncertainty to an already complex initiative.
