**Trump Suggests U.S. Sovereign Wealth Fund, Considers TikTok Purchase**
Last month, President Donald Trump momentarily postponed the implementation of a U.S. prohibition on TikTok, expressing his desire to reach a resolution that would permit the widely-used video-sharing platform to continue its operations in the nation. Now, Trump has hinted at a possible resolution: the U.S. government acquiring TikTok in full.
### A Sovereign Wealth Fund for the U.S.
In a recent executive order released on Monday, Trump proposed the establishment of a U.S. sovereign wealth fund. He tasked Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick with creating a detailed strategy for the fund within a 90-day period. The plan is anticipated to include funding strategies, investment approaches, structural designs, and governance systems.
Sovereign wealth funds, which serve as government-controlled investment entities, generally create wealth for a nation by investing in various assets such as stocks, bonds, and real estate. Any profits generated are then reinvested into the government’s budget. If put into place, a U.S. sovereign wealth fund could potentially empower the federal government to acquire a substantial portion of TikTok.
### Is the U.S. Government Considering Purchasing TikTok?
Trump has explicitly pointed to TikTok as a possible investment for the envisioned sovereign wealth fund. The app, owned by Chinese corporation ByteDance, has come under fire in the U.S. due to accusations of being a mechanism for Chinese surveillance and propaganda. Under the Biden administration, TikTok was prohibited from functioning in the U.S. unless ByteDance divested it to a U.S.-sanctioned organization.
“There’s no entity more amicable to the U.S. government than the U.S. government itself,” Trump stated. Regarding the sovereign wealth fund, he noted, “We’re looking into doing something with TikTok. If we reach an agreeable deal, we’ll proceed; if not, we won’t. But we possess the right to pursue that. Whatever we generate, we could place in the fund or collaborate with affluent individuals. There are numerous possibilities.”
Previously, Trump has indicated that U.S. firms like Microsoft and Oracle could collaborate in the acquisition of TikTok, pointing out significant interest from potential investors. However, should the government opt to utilize the sovereign wealth fund to take over TikTok’s U.S. operations, timing is crucial. The temporary suspension on the app’s ban concludes 75 days post-Trump’s inauguration, meaning a deal would have to reach completion by April 5. While Bessent has suggested the fund might be functional within a year, this timeframe exceeds the ban’s deadline significantly.
An extension of the delay is a possibility, yet ByteDance has continuously opposed selling TikTok, calling such an action “technologically, commercially, and legally unfeasible.”
### Financing the Sovereign Wealth Fund
The specifics regarding how the U.S. sovereign wealth fund would be funded are still uncertain. During his election campaign, Trump advocated for financing the initiative through “tariffs and other intelligent strategies.” Not long ago, he announced new tariffs on Mexico, Canada, and China, although the tariffs on Mexico and Canada were briefly halted.
“Other nations have sovereign wealth funds, and they’re significantly smaller than the United States,” Trump remarked. “We have vast potential in this country. Vast.”
Countries such as Singapore, Norway, and the United Arab Emirates already operate sovereign wealth funds typically funded by budget surpluses. However, the U.S. has continuously operated at a budget deficit since 2002, with the national debt currently standing at $710.9 billion. Australia and China also sustain sovereign wealth funds despite facing deficits, though their funds were established under unique circumstances, such as budget surpluses or the issuance of long-term treasury bonds.
### Administration of the Sovereign Wealth Fund
Details regarding the management of the U.S. sovereign wealth fund are largely unknown. Former President Joe Biden had contemplated the creation of such a fund in 2024, yet crucial elements concerning its framework and strategy were never concluded.
There has been speculation that billionaire Elon Musk could assume a role in managing the fund, considering Trump’s admiration for him as a “great business guy.” Musk has increasingly engaged in federal affairs since Trump’s inauguration, especially regarding financial matters. Recently, Musk’s Department of Government Efficiency (DOGE) gained access to the federal treasury’s database and payment systems, raising eyebrows among Senate Finance Committee members. Furthermore, Trump has appointed Musk as a “special government employee” with top-secret security clearance.
While Musk’s participation in the sovereign wealth fund has not been confirmed, his growing prominence in federal dealings implies he could have a notable impact. Interestingly, Musk recently turned down a meeting with the head of Norway’s sovereign wealth fund after they opposed his $56 billion compensation package as Tesla CEO.
### Wider Implications of a U.S. Sovereign Wealth Fund
If established, the U.S. sovereign wealth fund might invest not only in TikTok but also in major technology firms such as Tesla, Amazon, and Meta.