US President Donald Trump has signed an executive order to create a sovereign wealth fund next year. Among other things, he said the fund could potentially buy TikTok.
This was reported by Reuters.
Thus, it is noted that if a sovereign wealth fund is created, the United States could join many other countries, including in the Middle East and Asia, that have created similar funds as a way to make direct investments using public funds.
The text of the executive order is stingy with details and simply orders the departments of finance and commerce to submit a plan for creating such a fund within 90 days, including recommendations on "financing mechanisms, investment strategies, fund structure and management model."
Typically, such funds rely on the country's budget surplus to make investments, but the United States runs a deficit. Its creation is also likely to require congressional approval.
“We’re going to create a lot of wealth for the fund. And I think it’s time for this country to have a sovereign wealth fund,” Trump told reporters.
Administration officials have not said how the fund would operate or be funded, but Trump has previously said it could be funded through “tariffs and other smart things.”
Treasury Secretary Scott Bessant told reporters the fund would be established within the next 12 months.
“We’re going to monetize the active portion of the U.S. balance sheet for the American people. It’s going to be a combination of liquid assets, assets that we have in this country, as we work to make them available to the American people,” he said.
Trump also suggested the fund could buy TikTok, whose fate has been in the air since a law went into effect on January 19 requiring its Chinese owner, ByteDance, to either sell it on national security grounds or face a ban.
"We will do something, maybe with TikTok, maybe not. If we make the right deal, we will do it. Otherwise, we will not... maybe we will put it in a sovereign wealth fund," he said.
As Ukrainian News Agency earlier reported, it was previously announced that the most popular YouTuber in the world, MrBeast, whose channel has amassed 347 million subscribers, had officially joined the offer to buy TikTok's American division.
Meanwhile, China announced a broad package of economic measures aimed at the United States in response to US President Donald Trump's imposition of 10% tariffs on Chinese imports.
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