Trump Proposes U.S. Sovereign Wealth Fund with Potential TikTok Acquisition

The U.S. government may establish a sovereign wealth fund as President Trump hints at using it to possibly acquire TikTok. Discussions surrounding the fund and TikTok's future continue amidst complex commercial negotiations.

In a bold move, President Donald Trump has initiated the establishment of a U.S. sovereign wealth fund, suggesting that it could potentially acquire the popular social media platform TikTok. This executive order, signed earlier this week, aims to create a fund that Trump claims will be "one of the biggest" in the world, akin to those in over 90 countries that invest surplus income for the benefit of future generations, despite America's budget deficit.

"We're going to create a lot of wealth for the fund," Trump stated, though details about the fund's financing remain vague. The concept of a sovereign wealth fund was first introduced by Trump during his election campaign, where he proposed funding through "tariffs and other intelligent things." He has already delayed tariffs on imports from key trading partners Mexico and Canada for 30 days.

U.S. Treasury Secretary Scott Bessent confirmed plans for the fund's rollout within the next year, proposing to leverage U.S. government assets for public benefit. Trump highlighted the potential of the fund to support significant national initiatives, including infrastructure and medical research.

Amid ongoing talks about TikTok, which has faced scrutiny due to national security issues, Trump has indicated that the sovereign wealth fund could be a vehicle for its acquisition. Last month, the app faced a temporary shutdown in the U.S., leading to considerable user backlash, while Trump has expressed a desire for a competitive bidding process that includes tech giants like Microsoft and others like Larry Ellison and Elon Musk as potential buyers.

"I think we might do something with TikTok," Trump noted, leaving the door open for negotiations. The situation remains fluid, but as discussions progress, the future of TikTok in the American market could hinge on the establishment of this new fund.