US President Donald Trump has initiated the establishment of a sovereign wealth fund for the United States, suggesting it might consider acquiring TikTok in the future. The executive order to begin the process was signed on Monday, with Trump indicating that the fund could become "one of the biggest."
While over 90 countries have sovereign wealth funds that invest surplus income for future generations, the US currently faces a budget deficit. Trump mentioned to reporters that the fund would generate substantial wealth without specifying the funding source.
During his election campaign, Trump proposed funding the sovereign wealth fund through "tariffs and other intelligent things." He has also announced plans for tariffs on imports from major trading partners China, Mexico, and Canada, although tariffs on Mexico and Canada were delayed for 30 days.
US Treasury Secretary Scott Bessent stated that the fund would be established within the next year, aiming to monetize US government assets "for the American people." Trump envisions funding national endeavors like infrastructure and medical research through the sovereign wealth fund.
After the executive order was signed, Trump hinted at the possibility of the fund acquiring TikTok, the Chinese-owned social media platform. Amid national security concerns, TikTok faced a temporary shutdown in the US, prompting discussions on its sale. Trump has postponed the ban, suggesting that a deal with TikTok could involve the sovereign wealth fund.
Furthermore, Trump mentioned Microsoft's interest in acquiring TikTok, envisioning a potential bidding war involving tech figures like Larry Ellison and Elon Musk.