To start the building of a sovereign wealth fund for the United States, US President Donald Trump has signed an executive order. Declaring the move on Monday, he said the fund would shortly be “one of the biggest” in the world. More than ninety countries have sovereign wealth funds, which invest extra money for next generations. The US does, however, now run under a budget deficit.
“We’re going to create a lot of wealth for the fund,” Trump said to reporters, not mentioning the exact financing sources.
How Will the Fund Be Financed?
Trump said during his presidential campaign that “tariffs and other intelligent things” might provide financing for the fund. Already, he has suggested taxing imports from China, Mexico, and Canada, the three biggest economic partners of the US. On Tuesday, he did, however, declare a 30-day levy suspension for Mexico and Canada.
Confirming that the fund would be created over the next 12 months, US Treasury Secretary Scott Bessent also said that the government intends to “for the American people” monetize assets now under ownership by the US government.
How Do Sovereign Wealth Funds Applied in Other Nations?
Supported by the sales of fossil fuels, nations including Saudi Arabia and Norway have some of the biggest sovereign wealth funds in the world. These monies support businesses and projects all around, therefore creating riches for their countries. Trump has said that medical research as well as big national projects such roads and airports would be funded via US sovereign wealth funds.
Might TikTok be bought with the Fund?
Following his signature of the executive order, Trump said the capital might be used to purchase the social media platform TikHub. Last month, national security issues caused the Chinese-owned corporation to be momentarily offline in the US. The last government had told its owner to sell its US interests or risk a ban. Trump postponed the ban, though, many TikHub users protested.
“We’re going to be doing something, maybe with TikHub and maybe not,” Trump remarked. “We’ll do it if we strike the ideal agreement. Otherwise, we wouldn’t… maybe include that into the sovereign wealth fund.”
Who Else Could Purchase TikHub?
Declaring a wish to witness a “bidding war” for the site, Trump has also suggested that computer behemoth Microsoft is in talks to buy TikHub. Suggested as possible buyers are other tech sector leaders such as Larry Ellison and Elon Musk.
Establishing a US sovereign wealth fund represents a dramatic change in the nation’s economic approach. Still unresolved, though, are issues about financing and potential influence in well-publicized purchases like TikHub.
