President Donald Trump has signed an executive order to establish a U.S. sovereign wealth fund, suggesting that the fund could be used to purchase the social media platform TikTok. The move signals the administration’s ongoing efforts to regulate or potentially acquire the popular app amid national security concerns.
The executive order, signed on Monday, directs the U.S. Treasury and Commerce Departments to create the fund within the next 12 months. However, specifics on its funding sources and structure remain unclear. Trump has previously stated that the fund could be financed through “tariffs and other intelligent things.”
The announcement comes after Trump signed a separate executive order last month, extending the deadline for a potential TikTok ban by 75 days. The Chinese-owned app had briefly gone offline for 12 hours before resuming operations, but it remains absent from major app stores due to ongoing legal and regulatory disputes.
The Trump administration has raised concerns about TikTok’s data security practices and its ties to ByteDance, the China-based parent company. The U.S. government has long argued that the app poses a risk to national security, alleging that it could be used to collect data on American users.
As part of efforts to resolve the issue, Trump has revealed that discussions are underway with multiple interested parties regarding a potential TikTok acquisition.
Last week, the former president confirmed that Microsoft was engaged in talks to purchase TikTok. Additionally, he has previously stated that he would be open to a sale involving high-profile tech figures such as Tesla CEO Elon Musk or Oracle chairman Larry Ellison.
While a concrete decision regarding TikTok’s future in the U.S. is still pending, Trump has suggested that he expects to finalize a resolution in February. If an acquisition does not move forward, TikTok could face renewed legal and regulatory hurdles that may impact its operations in the country.
The creation of a sovereign wealth fund marks a significant policy shift for the U.S. government. Unlike other nations such as Norway, Saudi Arabia, and China, the United States has not traditionally operated a sovereign wealth fund to manage national investments.
While details on the fund’s size, governance, and funding mechanisms remain uncertain, Trump’s suggestion that it could be used to acquire TikTok raises questions about the government’s role in private sector investments. Economic and policy analysts are expected to scrutinize the plan in the coming months.
The proposal has already sparked reactions from lawmakers, tech executives, and economic experts. Critics argue that the move could set a controversial precedent for U.S. government intervention in corporate acquisitions. Others see it as a strategic response to China’s dominance in the technology sector.
Senator Josh Hawley (R-MO), a vocal critic of Chinese tech influence, expressed support for the initiative. “The U.S. needs to take a strong stance against foreign tech companies that threaten our data security. A sovereign wealth fund could help us reclaim control over critical digital infrastructure,” he stated.
However, Democratic lawmakers and civil rights groups have raised concerns about potential overreach, questioning whether a U.S. government-backed acquisition of a social media platform aligns with free-market principles.
The establishment of a sovereign wealth fund and the ongoing TikTok negotiations are expected to remain a major policy focus in the coming months. The Treasury and Commerce Departments will likely play a key role in determining how the fund is structured and whether it will extend beyond the TikTok acquisition to other strategic investments.
As Trump prepares to make a final decision regarding TikTok’s presence in the U.S., investors, social media users, and policymakers will closely watch how the situation unfolds. The next few weeks could determine whether the app remains accessible to millions of American users or faces further government-imposed restrictions.