Trump signs order to establish a superb wealth fund that he says could buy Tiktok

President Donald Trump on Monday signed an executive order that outlines plans for a government -controlled sovereign wealth fund to act as a financial development tool and maybe used to buy Tiktok.

Among the goals of the fund would be to develop infrastructure such as airports and highways, and it can help the United States expand its influence in areas such as Panama and Greenland.

“We’re going to get up this thing within the next 12 months. We’ll make money on the active side of the US balance for the US people,” said US Treasury Secretary Scott Bessent during a media pair. “There will be a combination of liquid assets, assets that we have in this country when we work to bring them out for the American people.”

There were no other details for a fund that Trump said during his campaign could support “great national efforts.” He has said that tariffs could help provide financing. Other nations use taxes on natural resources, financial transactions carbon use as financing mechanisms.

A discussed agreement where the United States would become a partner in social media platform Tiktok would be a potential use, Trump said. The app was taken offline maps in the middle of security concerns, but Trump signed an order that allows it back for a 75-day period where it will probably need to dispose of Chinese interests.

Although the idea of ​​such a US fund has been brought up before, the vehicles are generally used by smaller nations with large natural resources as well as tax profits to deploy – as opposed to the United States that has run massive budget deficits.

Nations with the funds include China, Norway and Singapore. An American fund could help it compete with these countries and may make the government less dependent on issuing government debt to raise money.

Norway has the largest sovereign wealth fund with more than $ 1.7 trillion in assets, according to SOVEREIGN WEALTH Fund Institute. China Investment Corp comes with $ 1.3 trillion.

These funds are involved in global financial markets through investments in equities, bonds and real estate together with stakes in infrastructure and private equity. Critics say a lack of transparency can lead to conflicts and corruption if there are no strict government rules.