President Donald Trump on Monday signed an executive order directing the creation of a sovereign wealth fund within the next year, suggesting it could potentially purchase the short-video app TikTok. However, he provided few details, and it remains unclear how such a fund would operate.
“So other countries have sovereign wealth funds and they're much smaller countries and they're not the United States. We have tremendous potential in this country, tremendous. You’re seeing that's what's happened, I mean, just in a short period of time. And as an example, 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,” he said.
“And we might put that in the sovereign wealth fund, whatever we make, or if we do a partnership with very wealthy people, there are a lot of options. But we could put that as an example in the fund. And we have a lot of other things that we could put in the fund.”
Typically, sovereign wealth funds rely on budget surpluses, while the U.S. operates at a deficit. Establishing the fund would also likely require congressional approval.
Trump said he wants Ukraine to supply the U.S. with rare earth minerals and that he was 'unhappy' with the situation in the Panama Canal.
Trump touted the Ukraine's rare earth minerals as compensation for Washington's financial support of its war efforts against Russia. Trump said Ukraine was willing and emphasized that he wants "equalization" for the "close to $300 billion" in aid. It was unclear whether he was using the term "rare earths" broadly to include all critical minerals or strictly referring to rare earth elements.
Zelensky vows Ukraine will do everything in 2025 to stop Russia
He also addressed the situation with Panama, stating that the country had agreed on "some things" following his repeated threats to take control of the vital trade waterway due to concerns over China's influence. Trump said he is scheduled to speak with Panamanian officials on Friday (February 7).
The President also commented on billionaire Elon Musk, stating that Musk, whom he has tasked with shrinking the U.S. government, is only taking actions that have been approved. Trump added that Musk "will not be allowed to go places where there is a conflict."