Trump signs order on US sovereign wealth fund

President Donald Trump signed an executive order on Monday to initiate the establishment of a U.S. sovereign wealth fund, which he suggested could potentially be utilized to save TikTok.

“Other nations have sovereign wealth funds, and they are much smaller countries, not the United States,” Trump remarked to reporters after signing the order.

A sovereign wealth fund is a government-owned investment vehicle designed to manage a nation’s surplus reserves, often sourced from natural resource revenues or trade surpluses, with the goal of achieving long-term financial returns.

Norway’s fund, primarily funded by its fossil fuel revenues, is the largest in the world, while Abu Dhabi, China, and Saudi Arabia also operate significant funds of their own.

Last year, Norway’s fund reported a 13 percent return, increasing its total value to $1.75 trillion.

“The vast scale and scope of the U.S. government and its business dealings with companies should generate value for American citizens,” stated Commerce Secretary Howard Lutnick.

Treasury Secretary Scott Bessent informed reporters that the fund would be established within the next 12 months.

Trump mentioned the acquisition of TikTok, the popular video-sharing app, as a potential example of a transaction that could be supported by the U.S. fund, though he did not provide specific details.

“We might include that in the sovereign wealth fund, whatever we earn, or if we form a partnership with very wealthy individuals,” he said.

TikTok is currently under pressure due to a U.S. law requiring the company to separate from its Chinese parent company, ByteDance, or face a ban in the United States. This law addresses concerns that the Chinese government could use the app to spy on Americans or manipulate U.S. public opinion.

Trump set a deadline of early April for TikTok to comply with the law. Regarding TikTok, he stated, “If we can strike the right deal, we’ll proceed. Otherwise, we won’t.”

Trump also revealed that he is in discussions with several individuals, including Elon Musk, Larry Ellison, and tech giant Microsoft, regarding the potential purchase of TikTok.