In a bold move, President Donald Trump has initiated the establishment of a U.S. sovereign wealth fund, suggesting a potential acquisition of the controversial social media platform TikTok. The announcement followed the signing of an executive order aimed at crafting a fund intended to generate wealth for future generations, despite ongoing budget deficits.
Trump Proposes US Sovereign Wealth Fund, Eyes TikTok Acquisition
Trump Proposes US Sovereign Wealth Fund, Eyes TikTok Acquisition
President Trump unveils plans for a sovereign wealth fund, hinting at a potential purchase of TikTok to enhance US public assets.
Trump detailed the fund's intent during a press briefing, asserting that it would quickly become one of the largest sovereign wealth funds globally. Over 90 nations maintain such funds, which leverage surplus income for long-term benefits. However, Trump did not elaborate on the sources for the fund’s capital, previously hinting at tariffs and other strategies to generate revenue.
The Treasury Secretary, Scott Bessent, indicated that the fund would be fully operational within the next year, focusing on monetizing existing government assets for the benefit of the American populace. Trump cited examples from nations like Saudi Arabia and Norway, whose substantial wealth funds are bolstered by oil revenues, to illustrate potential investment avenues.
The proposed fund aims to support large-scale national projects, such as infrastructure improvements and medical advancements. Among the more immediate plans, Trump mentioned that the fund could play a role in acquiring TikTok, particularly in the wake of security concerns that previously prompted calls for the app's shutdown in the U.S.
While Trump acknowledged the ongoing discussions involving Microsoft to potentially acquire TikTok, he left the door open for alternative arrangements, including a possible involvement of the sovereign wealth fund in any deal. He expressed hope for a "bidding war" over the platform, with other tech moguls also being considered as potential buyers.
Though Trump has temporarily suspended proposals for tariffs on Mexico and Canada, the push for a U.S. sovereign wealth fund remains one of his administration's more ambitious economic strategies as discussions around TikTok and other tech assets continue to evolve.
The Treasury Secretary, Scott Bessent, indicated that the fund would be fully operational within the next year, focusing on monetizing existing government assets for the benefit of the American populace. Trump cited examples from nations like Saudi Arabia and Norway, whose substantial wealth funds are bolstered by oil revenues, to illustrate potential investment avenues.
The proposed fund aims to support large-scale national projects, such as infrastructure improvements and medical advancements. Among the more immediate plans, Trump mentioned that the fund could play a role in acquiring TikTok, particularly in the wake of security concerns that previously prompted calls for the app's shutdown in the U.S.
While Trump acknowledged the ongoing discussions involving Microsoft to potentially acquire TikTok, he left the door open for alternative arrangements, including a possible involvement of the sovereign wealth fund in any deal. He expressed hope for a "bidding war" over the platform, with other tech moguls also being considered as potential buyers.
Though Trump has temporarily suspended proposals for tariffs on Mexico and Canada, the push for a U.S. sovereign wealth fund remains one of his administration's more ambitious economic strategies as discussions around TikTok and other tech assets continue to evolve.
