Trump Suggests US Sovereign Wealth Fund Could Acquire TikTok.

US President Donald Trump has initiated the establishment of a sovereign wealth fund for the United States, proposing that it may potentially acquire TikTok.

On Monday, the president signed an executive order to commence this initiative, asserting that the fund is expected to become "one of the biggest".

Over 90 nations operate sovereign wealth funds, which utilize excess revenue to benefit future generations. In contrast, the United States is currently facing a budget deficit.

"We're going to create a lot of wealth for the fund," Trump told reporters, without clarifying where the money would come from.

During his election campaign, Trump initially proposed the concept of a sovereign wealth fund, indicating that it could be financed through "tariffs and other intelligent things".

He has already declared intentions to implement tariffs on imports from the United States' three primary trading partners: China, Mexico, and Canada.

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However, on Tuesday, the tariffs on Mexico and Canada were suspended for a period of 30 days.

US Treasury Secretary Scott Bessent stated that the establishment of the fund is expected within the next year, with the objective of monetizing assets currently held by the US government "for the American people."

Saudi Arabia and Norway are home to two of the largest sovereign wealth funds globally, which are bolstered by revenues from fossil fuel sales. These funds are utilized to invest in various companies and projects worldwide.

President Trump has previously articulated that a sovereign wealth fund in the United States would support "great national endeavors," which would encompass infrastructure initiatives such as airports and roads, in addition to medical research.

Following the signing of the executive order to establish the fund, he also proposed the possibility of it acquiring the social media platform TikTok.

The Chinese-owned social media entity was temporarily taken offline in the United States last month due to national security issues, after the prior administration mandated its owner to divest its US operations or face a prohibition.

Trump has postponed the ban, vowing to seek a resolution after TikTok's American users expressed their opposition to its potential shutdown.

President Trump in the Presidential Suite at Walter Reed

"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."

The president has recently indicated that the technology powerhouse Microsoft is engaged in negotiations to purchase TikTok, expressing a desire to witness a "bidding war" for the acquisition of the social media platform. Additionally, prominent figures in the tech industry, such as Larry Ellison and Elon Musk, have been mentioned as potential purchasers.

For a U.S. sovereign wealth fund to be successful, it must be bipartisan, transparent, and independent of any single administration. If controlled by Trump or any individual president, it risks becoming a political tool rather than a long-term economic asset for the nation.

Effective management should involve a diverse board with oversight from both parties, ensuring accountability and strategic investments. Given the country's budget deficit, its funding sources must be carefully structured to avoid burdening taxpayers. If properly managed, such a fund could benefit future generations, but only if it remains free from partisan influence and personal agendas.

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