Trump Proposes U.S. Sovereign Wealth Fund Eyeing TikTok Acquisition

President Donald Trump signed an executive order to establish a U.S. sovereign wealth fund, potentially targeting the acquisition of TikTok. The fund aims to monetize assets within a year, with potential financing through tariffs and other revenues. Congress approval may be required due to the U.S.'s budget deficit.

In a move that could reshape U.S. economic strategy, President Donald Trump signed an executive order on Monday to create a sovereign wealth fund within a year, potentially setting its sights on acquiring TikTok. This strategic step could align the U.S. with various nations possessing similar funds for significant government investments.

The details of the executive order are limited, instructing the Treasury and Commerce Departments to present a detailed plan within 90 days, covering funding, investment strategies, and governance. Despite this ambitious plan, the challenge remains that the U.S. operates at a financial deficit, unlike the surpluses typically used for such funds, necessitating probable congressional approval.

Treasury Secretary Scott Bessent announced the fund's establishment within a year, possibly turning the U.S. International Development Finance Corp into a fund-like structure. Trump's consideration of TikTok for the fund brings further intrigue, as national security discussions regarding its ownership continue. The international community and investors are closely watching this unfolding development.

(With inputs from agencies.)