Trump Takes Step Toward US Sovereign Wealth Fund, Considers Buying TikTok

February 4, 2025
Trump Takes Step Toward US Sovereign Wealth Fund, Considers Buying TikTok

Trump Takes First Step to Create US Sovereign Wealth Fund, Hints at Buying TikTok

US President Donald Trump has started the process of setting up a sovereign wealth fund for the United States and has suggested that it could be used to buy TikTok.

On Monday, he signed an executive order to begin the process, saying the fund would soon become one of the biggest.

Sovereign wealth funds exist in over 90 countries, helping them invest extra money for future generations. However, the US currently spends more than it earns, leading to a budget deficit.

We’re going to create a lot of wealth for the fund, Trump told reporters, but he did not explain where the money would come from.

During his election campaign, Trump suggested the fund could be financed by tariffs and other revenue sources. He has already announced tariffs on imports from China, Mexico, and Canada, but on Tuesday, he paused the tariffs on Mexico and Canada for 30 days.

US Treasury Secretary Scott Bessent said the fund would be set up within a year. The goal is to make money from government-owned assets for the benefit of the American people.

Countries like Saudi Arabia and Norway have large sovereign wealth funds, mainly funded by oil profits, which they use to invest in companies and projects worldwide.

Trump has previously said that a US sovereign wealth fund would help pay for big national projects like roads, airports, and medical research.

After signing the executive order, he also mentioned that the fund might be used to buy TikTok.

Last month, the Chinese-owned social media app was temporarily banned in the US due to security concerns. The previous administration had ordered its owner to sell the US operations or face a complete ban. However, Trump delayed the ban after protests from TikTok users.

We might do something with TikTok, or we might not, Trump said, If we get the right deal, we’ll do it. Otherwise, we won’t… maybe we’ll put it in the sovereign wealth fund.

At the same time, Trump has said that Microsoft is considering buying TikTok and that he would like to see a bidding war for the app.

Other big names in the tech industry, such as Larry Ellison and Elon Musk, have also been mentioned as possible buyers.

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