Trump announces plan to possibly acquire TikTok using new sovereign wealth fund

 February 4, 2025

Former President Donald Trump revealed an unexpected strategy involving a new sovereign wealth fund aimed at saving a popular social media platform.

According to the Daily Mail, Trump signed an executive order establishing a sovereign wealth fund that could potentially be used to acquire TikTok and prevent its complete ban in the United States.

The former president expressed interest in having the U.S. government take a 50 percent stake in TikTok, a platform currently used by 170 million Americans. This move comes after Trump signed an order on Inauguration Day granting a 75-day reprieve of a law requiring TikTok's sale due to security concerns related to its China-based parent company ByteDance.

Treasury secretary outlines timeline for wealth fund implementation

Treasury Secretary Scott Bessent, who accompanied Trump in the Oval Office for the signing, provided details about the fund's establishment.

The administration aims to set up the sovereign wealth fund within the next year to monetize U.S. government assets. This marks a significant shift in U.S. financial policy, as the country has never operated such a fund before.

Trump emphasized that other countries, particularly Saudi Arabia, have successfully maintained sovereign wealth funds despite being smaller nations. The former president believes the United States has tremendous potential to benefit from such a financial instrument. He suggested that TikTok could serve as an example of how the fund might be utilized.

The executive order includes provisions for evaluating legal considerations and potential legislative requirements for establishing and managing the fund. This indicates that congressional approval may be necessary to fully implement the plan.

National security concerns linger amid acquisition talks

The proposed acquisition through a sovereign wealth fund addresses ongoing security concerns about TikTok's Chinese ownership. The law signed by President Biden required ByteDance to divest from TikTok due to these security issues. Trump's new approach suggests a different solution to these concerns through government partial ownership.

Trump stated during the announcement:

TikTok — we're going to be doing something, perhaps, with TikTok, and perhaps not, if we make the right deal we'll do it, otherwise we won't, but I have the right to do that. And we might put that in the sovereign wealth fund, whatever we make or we do a partnership with very wealthy people. A lot of options, but we could put that as an example of the fund.

The administration faces significant financial challenges in implementing this plan. While the United States boasts the world's largest economy, it carries a debt exceeding $30 trillion, with annual interest payments approaching $1 trillion.

Where the initiative stands today

Donald Trump's executive order establishing a sovereign wealth fund represents a novel approach to addressing both economic opportunities and national security concerns surrounding TikTok.

The proposed fund would enable the U.S. government to take a 50 percent ownership stake in TikTok, potentially resolving security issues while maintaining the platform's availability to its 170 million American users.

The Treasury Department plans to implement the fund within 12 months, though legal and legislative requirements may affect the timeline and specifics of its operation.

About Victor Winston

Victor is a freelance writer and researcher who focuses on national politics, geopolitics, and economics.
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