Trump Creates Sovereign Wealth Fund That Could Buy TikTok

President Donald Trump recently signed an executive order to create a U.S. sovereign wealth fund. This fund could potentially be used to purchase Tiktok from its Chinese parent company, ByteDance. Trump mentioned that the fund might also be used for other strategic investments and government projects.

It's an interesting move, considering the U.S. typically operates with a budget deficit, unlike many countries with sovereign wealth funds that have budget surpluses.

Trump signed an executive order on February 3, 2025, to create a U.S. sovereign wealth fund. This fund aims to leverage government-owned assets for national wealth generation. Trump mentioned that the fund could be used to purchase Tiktok from its Chinese parent company, ByteDance, if a suitable deal is made.

We might put [TikTok] in the sovereign wealth fund, whatever we make or we do a partnership with very wealthy people, a lot of options. But we could put that as an example in the fund — Trump said.

The fund is expected to be operational within the next year. Treasury Secretary Scott Bessent and Commerce Secretary-designate Howard Lutnick have been tasked with developing a detailed plan for the fund. The idea is to monetize the assets side of the U.S. balance sheet for the American people.

However, there are questions about how the fund will be financed since the U.S. typically operates with a budget deficit. Trump has suggested that it could be funded through tariffs and other measures, but specifics have not been provided.

The current situation with TikTok in the U.S. is quite dynamic. The short video app voluntarily shut down its services in the U.S. just hours before a ban was set to take effect on January 19, 2025. However, it quickly restored service after President Donald Trump signed an executive order extending the deadline and providing assurances to service providers.

Despite being accessible to users who already have the app installed, TikTok remains unavailable for download in the Apple and Google app stores in the U.S. This means new users cannot easily install the app.

Discussions are ongoing about a potential joint venture where the U.S. could gain partial ownership of TikTok. President Trump has suggested that the U.S. could take a 50% ownership stake in TikTok, but this idea is still under consideration and has not been finalized.

Earlier it was reported that China is reportedly considering selling TikTok's US operations to Elon Musk.

The situation is complicated by legal and political challenges, including concerns about national security due to TikTok's Chinese ownership. The Supreme Court upheld a law requiring ByteDance to divest its U.S. assets or face a ban, but the enforcement of this law has been delayed.

It's a fluid situation, and the future of TikTok in the U.S. remains uncertain.