In a recent move, President Donald Trump has initiated steps towards establishing a US sovereign wealth fund which he claims could facilitate the purchase of the popular social media platform TikTok.
Trump Proposes US Sovereign Wealth Fund to Potentially Acquire TikTok
Trump Proposes US Sovereign Wealth Fund to Potentially Acquire TikTok
US President hints at creation of sovereign fund to boost national wealth and invest in TikTok.
The president signed an executive order Monday to kickstart the fund's establishment, aiming to make it one of the largest in the world. Currently, over 90 nations have similar funds that utilize surplus income to benefit future generations, although the U.S. is grappling with a budget deficit. Trump insisted this fund could generate significant wealth, although specifics on funding sources were not provided.
During his campaign, the notion of a sovereign wealth fund was first proposed by Trump, who suggested it could be funded through tariffs and other strategic initiatives. Recently he announced a pause on tariff levies against Mexico and Canada for 30 days after previously outlining these measures against major trading partners like China.
Treasury Secretary Scott Bessent indicated plans for the implementation of the fund within a year, proposing to monetize existing government assets for the welfare of Americans. Countries like Saudi Arabia and Norway have successfully leveraged their sovereign wealth funds, primarily generated from fossil fuel revenues, to make investments globally. Trump envisions a similar model, targeting national infrastructure and medical research endeavors.
In addition to the fund's creation, Trump mentioned the potential acquisition of TikTok, a platform that faced shutdown in the U.S. due to national security concerns, stemming from its Chinese ownership. The previous administration mandated the company to sell its U.S. operations to continue operating, and though Trump has postponed the ban, he remains in search of an ideal solution following user protests.
While discussing TikTok's future, Trump noted the possibility for it to be integrated within the proposed sovereign wealth fund, adding, "If we make the right deal, we'll do it. Otherwise, we won't." Microsoft has been suggested as a potential buyer for TikTok, with Trump expressing a desire for a bidding competition involving other tech giants like Elon Musk and Larry Ellison.
During his campaign, the notion of a sovereign wealth fund was first proposed by Trump, who suggested it could be funded through tariffs and other strategic initiatives. Recently he announced a pause on tariff levies against Mexico and Canada for 30 days after previously outlining these measures against major trading partners like China.
Treasury Secretary Scott Bessent indicated plans for the implementation of the fund within a year, proposing to monetize existing government assets for the welfare of Americans. Countries like Saudi Arabia and Norway have successfully leveraged their sovereign wealth funds, primarily generated from fossil fuel revenues, to make investments globally. Trump envisions a similar model, targeting national infrastructure and medical research endeavors.
In addition to the fund's creation, Trump mentioned the potential acquisition of TikTok, a platform that faced shutdown in the U.S. due to national security concerns, stemming from its Chinese ownership. The previous administration mandated the company to sell its U.S. operations to continue operating, and though Trump has postponed the ban, he remains in search of an ideal solution following user protests.
While discussing TikTok's future, Trump noted the possibility for it to be integrated within the proposed sovereign wealth fund, adding, "If we make the right deal, we'll do it. Otherwise, we won't." Microsoft has been suggested as a potential buyer for TikTok, with Trump expressing a desire for a bidding competition involving other tech giants like Elon Musk and Larry Ellison.
