US sovereign wealth fund could buy TikTok, Trump says

In a significant move, US President Donald Trump has initiated the process of establishing a sovereign wealth fund for the United States, which he has suggested could potentially acquire the popular social media platform TikTok. On a Monday in January 2025, Trump signed an executive order to begin the creation of this fund, claiming it could become one of the largest sovereign wealth funds globally. Sovereign wealth funds are investment funds owned by governments, and over 90 countries currently operate such funds to invest surplus income for the benefit of future generations. However, the United States is currently facing a budget deficit, meaning it spends more than it earns. Trump stated, 'We're going to create a lot of wealth for the fund,' but he did not provide details on how this wealth would be generated. During his election campaign, Trump first proposed the idea of a sovereign wealth fund, suggesting it could be funded through tariffs and other strategic measures. He has already announced plans to impose tariffs on imports from the US's three largest trading partners: China, Mexico, and Canada. However, on Tuesday, he decided to pause the tariffs on Mexico and Canada for 30 days. US Treasury Secretary Scott Bessent indicated that the fund would be established within the next year, with plans to monetize assets currently owned by the US government 'for the American people. ' Countries like Saudi Arabia and Norway have some of the largest sovereign wealth funds in the world, primarily funded by profits from fossil fuel sales. These funds invest in various companies and projects across the globe. Trump has previously mentioned that a US sovereign wealth fund could finance 'great national endeavors,' including infrastructure projects such as airports and roads, as well as medical research. After signing the executive order to create the fund, he also raised the possibility of it acquiring TikTok. The app, which is owned by a Chinese company, faced a temporary shutdown in the US last month due to national security concerns, following an order from the previous administration for its owner to sell its US operations or face a ban. Trump has since delayed the ban, promising to find a solution after TikTok's US users protested against its potential shutdown. He remarked, 'We're going to be doing something, perhaps with TikTok, and perhaps not. ' He emphasized that if a favorable deal is reached, they would proceed, but if not, they would not pursue it. Additionally, Trump mentioned that technology giant Microsoft is in talks to acquire TikTok and expressed his desire to see a 'bidding war' for the sale of the app. Other notable figures in the tech industry, such as Larry Ellison and Elon Musk, have also been mentioned as potential buyers.