U.S. President Donald Trump has taken significant steps towards establishing a U.S. sovereign wealth fund, a move that could reshape the country’s financial landscape. On Monday, Trump signed an executive order aimed at initiating the process, suggesting that the fund could eventually become one of the largest in the world. The fund’s primary goal would be to invest surplus income for future generations, a strategy already employed by more than 90 countries globally, although the U.S. currently operates with a budget deficit.
“We’re going to create a lot of wealth for the fund,” Trump stated to reporters, although he did not clarify the specific sources of funding. During his presidential campaign, Trump hinted that the fund could be financed through tariffs and other revenue streams. Recently, Trump imposed tariffs on imports from China, Mexico, and Canada, though the tariffs on Mexico and Canada were temporarily paused for 30 days.
U.S. Treasury Secretary Scott Bessent has assured that the sovereign wealth fund will be established within the next 12 months, with a focus on monetizing U.S. government-owned assets for the benefit of the American people. Similar funds have been highly successful in countries like Saudi Arabia and Norway, both of which have some of the world’s largest sovereign wealth funds, primarily funded by oil revenues. These funds invest in global companies and large-scale projects, and Trump envisions a similar strategy to fund domestic infrastructure projects, including roads, airports, and medical research.
In an unexpected twist, Trump also floated the idea of using the sovereign wealth fund to acquire TikTok, the Chinese-owned social media platform embroiled in national security concerns. The Trump administration had previously ordered TikTok’s parent company, ByteDance, to sell its U.S. operations or face a ban, but a solution had yet to be reached. “We’re going to be doing something, perhaps with TikTok, and perhaps not,” Trump said, implying that the fund could be the vehicle for such a deal.
While Trump has expressed interest in involving major tech players like Microsoft in the potential acquisition of TikTok, he has also indicated that the sovereign wealth fund could play a key role in the negotiations. High-profile tech figures such as Larry Ellison and Elon Musk have also been mentioned as possible buyers.
As the U.S. contemplates the creation of its sovereign wealth fund, the future of TikTok remains uncertain, and its potential inclusion in the fund could mark a significant shift in how the U.S. engages with global technology investments. The next 12 months are poised to be pivotal in shaping the direction of this ambitious economic plan.
