The controversy surrounding the TikTok ban in the US has made significant progress.
US President Donald Trump has initiated the process of creating a sovereign wealth fund for the United States.
Not only that, Trump also suggested that this fund might eventually be used to buy the social media app TikTok.
Although over 90 have such funds to invest extra income for future generations, the US is currently facing a budget deficit.
The president signed an executive order on Monday, February 4, to start creating the sovereign wealth fund, with the goal to make it one of the largest in the world.
Trump said, "We're going to create a lot of wealth for the fund.”
He initially proposed the idea of a sovereign wealth fund during his election campaign but he didn’t clarify where the money would come from.
However, he suggested that the fund could be financed through tariffs and other “intelligent things.”
Trump had already announced plans to impose tariffs on the US’s three largest trading partners which includes China, Mexico and Canada.
However, the tariffs on Mexico and Canada were paused for the next 30 days.
US Treasury Secretary Scott Bessent stated that the sovereign wealth fund would be created within the next 12 months, with the aim of generating money by using assets already owned by the US government.
The president has recently mentioned that Microsoft is in talks to buy TikTok. Other well-known tech giant like Larry Ellison and Elon Musk have been suggested as potential buyers of the Chinese-owned social media app.
