Trump Signs Executive Order To Create Sovereign Wealth Fund, May Purchase TikTok- wna24

Washington DC: US President Donald Trump signed an executive order on Monday, directing the US Treasury and Commerce Departments to create a sovereign wealth fund. The fund, which Trump aims to establish within the next 12 months, will monetise the asset side of the US balance sheet for the American people.

Talking to reporters, Trump stated, “We’re going to stand this thing up within the next 12 months. We’re going to monetise the asset side of the US balance sheet for the American people.”

“There’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people,” the US President said.

Notably, Trump first floated the sovereign wealth fund concept during his presidential campaign, which aimed to fund “great national endeavours” such as infrastructure projects, manufacturing, and medical research. Although details on the fund’s operation and financing are scarce, Trump previously suggested that it could be funded by “tariffs and other intelligent things”.

Notably, the US operates at a deficit, unlike most countries with sovereign wealth funds, which rely on budget surpluses to make investments. Globally, there are over 90 such funds managing over USD 8 trillion in assets, according to the International Forum of Sovereign Wealth Funds.

In a related development, Trump revealed that the sovereign wealth fund may purchase TikTok, a popular social media platform with approximately 170 million American users. TikTok’s Chinese owner, ByteDance, was required to sell the platform or face a ban due to national security concerns. However, Trump signed an executive order delaying the enforcement of the law by 75 days.

Trump has been in talks with multiple parties regarding TikTok’s purchase and is expected to decide on the platform’s future in February.