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Trump Proposes US Sovereign Wealth Fund; Hints at TikTok Acquisition

04 Feb, 2025 10 mins read 158 views

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Trump Proposes US Sovereign Wealth Fund; Hints at TikTok Acquisition

US President Donald Trump has proposed creating a sovereign wealth fund, with the potential acquisition of TikTok as part of the plan. The fund would raise funds through tariffs and could become one of the largest in the world. Trump also hints at using it to acquire TikTok amidst national security concerns.

Dhaka: US President Donald Trump has initiated steps to establish a sovereign wealth fund in the United States, with a potential acquisition of TikTok being part of the plan.

On Monday, Trump signed an executive order to begin the process of creating the fund, stating that it would soon become one of the "largest" funds in the world.

The BBC reports that more than 90 countries around the world have sovereign wealth funds, which invest surplus income for the benefit of future generations. However, the US is currently facing a budget deficit.

Without specifying a clear source of funding, Trump told reporters, "We are going to raise a lot of money for this fund." The concept of a sovereign wealth fund was first introduced by Trump during his presidential campaign, where he suggested it could be funded through tariffs and other strategic methods.

Trump has already announced plans to impose a 25% tariff on imports from the US's three largest trade partners—China, Mexico, and Canada. However, he temporarily suspended the tariff on Mexican and Canadian products for 30 days on Tuesday, while the 10% tariff on Chinese goods remains in place and is set to take effect at midnight.

US Treasury Secretary Steven Mnuchin stated that the fund will be established within the next 12 months. The aim is to keep US government-owned assets “available for the American people."

Saudi Arabia and Norway are among the world's largest sovereign wealth funds, funded by the revenue from their fossil fuel sales. They invest in various companies and projects worldwide.

Earlier, Trump had mentioned that the fund would be used to finance critical infrastructure projects such as airports, roads, and medical research in the country.

After signing the executive order for the fund, Trump also suggested that it could include the acquisition of the popular social media app, TikTok.

TikTok, owned by the Chinese company ByteDance, was faced with significant challenges when former US President Joe Biden signed the "Protecting Americans from Foreign Adversary Controlled Applications Act" into law on April 24, 2024. Under this law, ByteDance would be required to sell its stake in TikTok to an American company within six months or face a ban in the US.

In response to national security concerns, the new law came into effect after TikTok temporarily halted its service to American users on Saturday night. Following protests from US users, Trump lifted the ban for 75 days, promising a resolution to the issue.

"We are going to do something, maybe with TikTok. Perhaps we won’t. If we do it, we’ll do it through the right deal. Otherwise, we won’t. We might keep TikTok in this fund," Trump said.

The President also mentioned that he would like to see a "bidding war" for the sale of TikTok, with tech giants like Microsoft, Larry Ellison, and Elon Musk reportedly on the list of potential buyers, according to BBC.

Trump Proposes US Sovereign Wealth Fund; Hints at TikTok Acquisition

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