WASHINGTON: President Donald Trump has issued an executive order to establish a sovereign wealth fund, which he claims could facilitate the acquisition of TikTok. The directive tasks the US Treasury and Commerce Departments with structuring the fund to generate revenue from government-owned assets.
“We aim to launch this within the next year, leveraging the asset side of the US balance sheet to benefit the American people,” stated Treasury Secretary Scott Bessent while addressing reporters.
The proposed fund will consist of both liquid and domestic assets, with the administration working to unlock their potential value. Trump had previously introduced the idea of a government-backed investment initiative during his presidential campaign, suggesting it could finance major national projects, including infrastructure development, manufacturing, and medical research.
Specific details regarding the fund’s operation and financing remain unclear. However, Trump has previously indicated that it could be supported through “tariffs and other smart strategies.” Unlike traditional sovereign wealth funds—typically sustained by budget surpluses—the US runs on a deficit, raising questions about funding sources.
Globally, over 90 sovereign wealth funds manage assets exceeding $8 trillion, as per the International Forum of Sovereign Wealth Funds.
Meanwhile, TikTok, which boasts approximately 170 million US users, briefly went offline ahead of the enforcement of a law mandating that its Chinese parent company, ByteDance, divest its ownership due to national security concerns. The law, initially set to take effect on January 19, faced a delay of 75 days after Trump’s executive intervention.
The president has since engaged in discussions with multiple potential buyers and is expected to finalize a decision on TikTok’s future in February.
