Trump signs order to create a sovereign wealth fund that could buy TikTok

U.S. President Donald Trump signed an executive order on Monday ordering the creation of a sovereign wealth fund within the next year, saying it could potentially buy the short video app TikTok.

Trump offered little in the way of detail and it was unclear how such a wealth fund would work. Typically such funds rely on a country’s budget surplus to make investments, but the U.S. operates at a deficit. Its creation also would likely require approval from Congress.

“We’re going to create a lot of wealth for the fund,” Trump told reporters. “And I think it’s about time that this country had a sovereign wealth fund.”

Trump had previously floated such a government investment vehicle as a presidential candidate, saying it could fund “great national endeavors” like infrastructure projects such as highways and airports, manufacturing, and medical research.

Administration officials did not say how the fund would operate or be financed, but Trump has previously said it could be funded by “tariffs and other intelligent things.”

Treasury Secretary Scott Bessent told reporters the fund would be set up within the next 12 months.

“We’re going to monetize the asset side of the U.S. balance sheet for the American people,” Bessent said. “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 Biden administration also was considering establishing such a fund prior to Trump’s election in November, according to The New York Times and Financial Times.

Investors on Wall Street said the news came as a surprise.

“Creating a sovereign wealth fund suggests that a country has savings that will go up and can be allocated to this,” said Colin Graham, head of multi-asset strategies at Robeco in London. “The economic rules of thumb don’t add up.”

There are over 90 such funds across the world managing over $8 trillion in assets, according to the International Forum of Sovereign Wealth Funds.

In another surprise twist, Trump suggested the wealth fund could buy Tiktok, whose fate has been up in the air since a law requiring its Chinese owner ByteDance to either sell it on national security grounds or face a ban took effect on Jan. 19.

Trump, after taking office on Jan. 20, signed an executive order seeking to delay by 75 days the enforcement of the law.

Trump has said that he was in talks with multiple people over TikTok’s purchase and would likely have a decision on the app’s future in February. The popular app has about 170 million American users.

“We’re going to be doing something, perhaps with TikTok, and perhaps not,” Trump said. “If we make the right deal, we’ll do it. Otherwise, we won’t…we might put that in the sovereign wealth fund.”

—Jarrett Renshaw, Pete Schroeder, and Suzanne McGee, Reuters

https://www.fastcompany.com/91271943/trump-order-sovereign-wealth-fund-buy-tiktok?partner=rss&utm_source=rss&utm_medium=feed&utm_campaign=rss+fastcompany&utm_content=rss

Erstellt 6mo | 03.02.2025, 23:30:05


Melden Sie sich an, um einen Kommentar hinzuzufügen

Andere Beiträge in dieser Gruppe

This $200 million sports streamer is ready to take on ESPN and Fox

Recent Nielsen data confirmed what many of us had already begun to sense: Streaming services

15.08.2025, 11:50:09 | Fast company - tech
This new flight deck technology is making flying safer, reducing delays, and curbing emissions

Ever wondered what goes on behind the scenes in a modern airliner’s cockpit? While you’re enjoying your in-flight movie, a quiet technological revolution is underway, one that’s

15.08.2025, 11:50:07 | Fast company - tech
The case for personality-free AI

Hello again, and welcome to Fast Company’s Plugged In.

For as long as there’s been software, upgrades have been emotionally fraught. When people grow accustomed to a pr

15.08.2025, 11:50:07 | Fast company - tech
Why AI is vulnerable to data poisoning—and how to stop it

Imagine a busy train station. Cameras monitor everything, from how clean the platforms are to whether a docking bay is empty or occupied. These cameras feed into an

15.08.2025, 09:40:03 | Fast company - tech
5 ways to keep your electronic devices from overheating this summer

The summer holidays are here and many of us will heading off on trips to hot and sunny destinations,

14.08.2025, 17:30:04 | Fast company - tech
Why Nvidia and AMD’s China pay-to-play deal with Trump could backfire

Welcome to AI Decoded, Fast Company’s weekly new

14.08.2025, 17:30:02 | Fast company - tech
Here are the countries restricting access to WhatsApp

Russia on Wednesday became the latest country to restrict some

14.08.2025, 15:10:04 | Fast company - tech