Trump Signs Executive Order to Establish U.S. Sovereign Wealth Fund with Potential TikTok Acquisition

On February 3, 2025, President Donald Trump signed an executive order initiating the creation of the United States' first sovereign wealth fund. This strategic move aims to bolster the nation's economic interests by managing assets for the benefit of American citizens. Notably, President Trump suggested that this fund could be utilized to acquire the popular social media platform TikTok, currently owned by China's ByteDance.

Details of the Executive Order

The executive order directs the U.S. Treasury and Commerce Departments to establish the sovereign wealth fund within the next 12 months. While specific funding mechanisms were not detailed, President Trump hinted at financing the fund through "tariffs and other smart things." Treasury Secretary Scott Bessent confirmed the administration's commitment to forming the fund, emphasizing its role in managing assets to benefit the American populace.

Potential TikTok Acquisition

The proposed acquisition of TikTok aligns with ongoing national security concerns regarding the app's Chinese ownership. A law enacted last year mandates ByteDance to sell TikTok or face a ban in the U.S. President Trump has delayed enforcing this law, indicating that the sovereign wealth fund could facilitate the purchase, thereby addressing security issues while maintaining the app's availability to its 170 million U.S. users.

Comparison to Global Sovereign Wealth Funds

Sovereign wealth funds are state-owned investment entities commonly utilized by countries to manage national assets and invest in various sectors. For instance, Norway's Government Pension Fund Global is valued at approximately $1.7 trillion, making it one of the largest in the world. The U.S. fund aims to generate wealth for the nation, with potential investments spanning infrastructure, medical research, and technology.

Other Executive Actions Since Re-election

Since his re-election and inauguration on January 20, 2025, President Trump has enacted several executive orders reflecting his administration's priorities:

• January 21, 2025: Issued pardons for individuals involved in the January 6 Capitol incident.

• January 23, 2025: Signed an order to eliminate diversity, equity, and inclusion (DEI) policies within federal agencies.

• January 25, 2025: Ended what he termed "gender radicalism" in the military, impacting policies related to gender identity and service.

• January 28, 2025: Implemented a halt on all federal aid, a move that has sparked significant debate.

Timeline of Actions Post-Re-election

• November 5, 2024: Donald Trump wins the presidential election.

• January 20, 2025: Inaugurated as the 47th President of the United States.

• January 21-28, 2025: Issued a series of executive orders focusing on pardons, DEI policies, military regulations, and federal aid.

• February 3, 2025: Signed the executive order to establish a U.S. sovereign wealth fund, with discussions underway regarding the potential acquisition of TikTok.

Looking Ahead

The establishment of a U.S. sovereign wealth fund marks a significant shift in the nation's economic strategy. As the administration moves forward with this initiative, key considerations will include securing congressional approval, determining funding sources amidst existing budget deficits, and identifying strategic investment opportunities that align with national interests. The proposed acquisition of TikTok is poised to be a focal point in discussions about the fund's initial ventures.

As developments unfold, the administration's actions will continue to shape the economic and political landscape, with implications for both domestic policy and international relations.