Trump Proposes U.S. Sovereign Fund Inspired by Saudi Arabia, Eyes TikTok Acquisition

In a significant move, President Donald Trump has issued an order to establish a United States sovereign wealth fund, which he proposes could be utilized to potentially acquire TikTok. According to reports from Reuters, the executive order lacks specific details, directing the U.S. Treasury to devise a plan within 90 days.

A primary concern surrounding this initiative is the source of funding for the proposed fund. Typically, sovereign funds are financed through national surpluses, yet the U.S. has been operating at a deficit for several years. This announcement underscores Trump's intentions to bring the U.S. operations of TikTok, the popular video-sharing app, under government control.

The establishment of the fund will be overseen by U.S. Treasury Secretary Scott Bessent and the incoming Secretary of Commerce Howard Lutnick. While Trump did not elaborate on the specifics during the signing of the executive order, he indicated that the fund aims to match the scale of Saudi Arabia's Public Investment Fund, which is valued at over $900 billion. Other nations, including China and Norway, have even larger sovereign funds.

Reports suggest that Trump has previously mentioned funding for the new U.S. fund could come from anticipated tariff revenues.

This initiative also adds a new dimension to the ongoing situation regarding TikTok. Former President Joe Biden had set a condition that TikTok's U.S. operations must either be sold or banned prior to Trump taking office. However, the current administration has opted not to enforce this existing requirement. Although TikTok remains unavailable in U.S. app stores, users who already have the app can continue to access it. Various potential buyers have expressed interest, but Trump's administration is now signaling a desire to exert direct control over the platform.