Trump Proposes US Sovereign Wealth Fund to Potentially Acquire TikTok

In a recent executive order, President Trump has proposed establishing a sovereign wealth fund for the US, aiming to leverage assets and potentially acquire the Chinese-owned app TikTok. This fund may help finance significant national projects as the administration navigates trade tariffs and ongoing negotiations concerning TikTok's future in the US.

In a significant move towards the establishment of a sovereign wealth fund in the United States, President Donald Trump has signed an executive order aimed at jumpstarting the initiative. The president contends that this fund could evolve into one of the largest in the world and could potentially lead to the acquisition of the popular social media platform TikTok.

Currently, over 90 nations have established sovereign wealth funds that invest surplus income to benefit future generations. The United States, however, is grappling with a budget deficit. Trump characterized the project as an opportunity to generate considerable wealth for the fund, although specifics about its funding sources remain vague. During his campaign, he initially hinted that the fund might be financed through "tariffs and other intelligent things," a notion he still appears to support with plans to impose tariffs on imports from leading trading partners such as China, Mexico, and Canada. Although the implementation of tariffs on Mexico and Canada has been put on hold for the next 30 days, the assurance of a sovereign wealth fund remains a critical aspect of Trump’s economic vision.

US Treasury Secretary Scott Bessent has offered timelines for the fund's establishment, suggesting that it will become operational within the next twelve months. The government proposes to monetize assets it currently owns to generate funding for American citizens. Countries like Saudi Arabia and Norway have effectively utilized substantial sovereign wealth funds founded on fossil fuel revenues to invest globally.

Beyond long-term funding potentials, Trump has emphasized that a US wealth fund would also finance significant initiatives, including infrastructure improvements and medical research. Following the executive order, Trump expressed interest in possibly acquiring TikTok through the proposed fund. The app, owned by a Chinese company, faced recent scrutiny over national security risks, resulting in a temporary suspension enforced by the previous administration. Amid protests from TikTok’s US user base against its potential shutdown, Trump has vowed to seek an alternative solution, providing the possibility of a purchase instead.

While Trump mentioned TikTok as a candidate for acquisition, he has also indicated that Microsoft is currently negotiating for its purchase. Furthermore, the concept of fostering a "bidding war" for TikTok's sale has been deemed favorable by the president, advocating for the involvement of major tech figures such as Elon Musk and Larry Ellison in the acquisition discussions.