Trump says US sovereign wealth fund could buy TikTok

U.S. President Donald Trump has taken initial steps to establish a U.S. sovereign wealth fund, and has hinted that the fund could eventually acquire TikTok. On Monday, the President signed an executive order initiating the process, stating that the fund would soon become "one of the largest funds."

Currently, over 90 countries worldwide have established sovereign wealth funds to invest surplus revenue for the benefit of future generations. However, the U.S. is currently facing a budget deficit. "We are going to create a lot of wealth for the fund," Trump told reporters without specifying the source of the funds. During his campaign, when Trump first proposed the idea of a sovereign wealth fund, he suggested that it could raise money through "tariffs and other smart measures."

Trump has already announced plans to impose tariffs on imported goods from the U.S.'s three major trading partners—China, Mexico, and Canada. But on Tuesday, the imposition of tariffs on Mexico and Canada was suspended for 30 days. U.S. Treasury Secretary Scott Bessent stated that the fund will be established within the next 12 months, with plans to monetize assets currently owned by the U.S. government "for the American people."

Saudi Arabia and Norway possess two of the world's largest sovereign wealth funds, with their funding derived from fossil fuel sales. They invest in companies and projects around the world. President Trump has previously stated that the U.S. sovereign wealth fund would finance "great national projects," including infrastructure projects like airports and roads, as well as medical research. After signing the executive order to establish the fund, he also raised the idea of the fund potentially acquiring the social media platform TikTok.

The Chinese-owned social media company was briefly taken offline in the U.S. last month due to national security concerns, after the previous administration ordered its owners to sell its U.S. operations or face a ban. Trump delayed the ban after U.S. TikTok users protested its shutdown, and promised to find a solution. “We’re going to do something, maybe with respect to TikTok, maybe not,” Trump said. “If we make a proper deal, we’ll do it. If we don’t, we won’t… We may put it into a sovereign wealth fund.”

However, the President also recently indicated that tech giant Microsoft is in discussions to acquire TikTok, and that he would like to see a “bidding war” develop around the sale of the social media application. Other tech heavyweights, including Larry Ellison and Elon Musk, have also been considered possible buyers.