President Donald Trump has signed an executive order to establish a US sovereign wealth fund, proposing its use for major investments. The fund, which he claims will become one of the biggest, could help finance national projects and even acquire TikTok.
Over 90 countries operate sovereign wealth funds that invest surplus income for future generations, but the US currently runs a deficit. Trump’s sovereign wealth fund plans remain unclear on funding resources, though he previously suggested tariffs and asset monetization could generate revenue.
Trump recently imposed tariffs on China, Mexico and Canada, though levies on Mexico and Canada were paused for 30 days. Treasury Secretary Scott Bessent stated that officials plan to launch the fund within 12 months by monetizing government-owned assets.
Two of the world’s most prominent sovereign wealth funds are run by Saudi Arabia and Norway, and both are backed by fossil fuel revenue. Trump envisions the US version of financing infrastructure projects such as airports, roads and medical research.
Additionally, Trump hinted that the fund would buy TikTok, a Chinese-owned social media app that was banned in the US due to security concerns. The Biden administration told the parent firm of TikTok to sell it to the US.
After multiple Americans protested, Trump postponed the ban, believing the problem must be fixed. “If we make the right deal, we’ll do it. Otherwise, we won’t… we might put that in the sovereign wealth fund,” he explained.
Microsoft previously engaged in acquisition talks, and Trump encouraged a bidding war over the app. Tech leaders like Larry Ellison and Elon Musk have also emerged as potential buyers. Whether Trump’s sovereign wealth fund investments include TikTok or focus solely on national infrastructure remains uncertain.
