In a decisive move, President Donald Trump has initiated the establishment of a sovereign wealth fund for the United States, marking a significant step in national economic strategy. This development comes amid discussions on how to leverage government-owned assets for the benefit of American citizens. The plan, announced by an executive order signed on Monday, aims to set up the fund within the next 12 months.
The envisioned sovereign wealth fund would join the ranks of over 90 countries that currently operate such funds. These funds are typically used by nations to manage surplus revenues and invest them in a variety of ventures. President Trump has articulated that the US fund would finance "great national endeavors," potentially including infrastructure projects and medical research.
US Treasury Secretary Scott Bessent is closely involved in crafting this strategic initiative. The intent is to monetize existing government assets, thus addressing the budget deficit the US is grappling with. President Trump has expressed confidence in the fund's potential, stating it could soon become "one of the biggest" globally.
President Trump has suggested that the fund could be financed through tariffs and other innovative financial strategies. The US has already imposed tariffs on imports from China, Mexico, and Canada, although the tariffs on the latter two have been temporarily paused for 30 days. These tariffs are seen as potential revenue streams for the fund.
The possibility of the US sovereign wealth fund purchasing TikTok has also been floated.
"We're going to be doing something, perhaps with TikTok, and perhaps not," – Trump
This comment reflects ongoing negotiations and strategic considerations regarding TikTok's ownership. Prominent figures in technology, such as Larry Ellison and Elon Musk, have also been mentioned as potential buyers of TikTok.
President Trump emphasized the importance of making prudent financial decisions regarding TikTok's future.
"If we make the right deal, we'll do it. Otherwise, we won't… we might put that in the sovereign wealth fund." – Trump