- Trump signed an executive order to create a U.S. sovereign wealth fund, overseen by the Treasury and Commerce Departments.
- The fund may be financed by tariff revenues and could invest in industries like manufacturing, defense, and research.
- Trump hinted at using the fund to acquire TikTok, following a temporary U.S. ban on the platform in January.
President Donald Trump has signed an executive order to establish a sovereign wealth fund for the United States. The Treasury and Commerce Departments will oversee its creation, with Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick tasked with launching the initiative.
“We have tremendous potential,” Trump declared from the Oval Office on Monday. However, the details surrounding the fund remain murky. The document Trump signed hasn’t been made public, and it’s unclear how the fund—which he previously called “the greatest sovereign wealth fund of them all”—will be financed.
What Is a Sovereign Wealth Fund?
A sovereign wealth fund is a state-owned investment fund that invests in a range of assets like stocks, real estate, and bonds. These funds build reserves to protect against economic downturns. While new to the U.S. at the federal level, several states, including Texas, New Mexico, and Alaska, already manage large funds tied to industries like oil, education, and real estate.
Trump introduced the idea at the Economic Club of New York last September, suggesting that tariff revenues could finance investments in key sectors like manufacturing, defense, and medical research. “We’ll create America’s own sovereign wealth fund to invest in great national endeavors for all Americans,” Trump had said at the time.
TikTok and Other Ambitions
Trump hinted that the fund might be used to make strategic acquisitions, including a possible purchase of TikTok. The platform faced a temporary ban in the U.S. last month but resumed operations after Trump intervened. Security concerns remain, prompting regulators to push for a U.S.-based owner to safeguard data.
This isn’t the first time the idea of a sovereign wealth fund has surfaced. Former President Joe Biden also proposed a similar initiative, focusing on national security priorities like technology and critical infrastructure. However, his plan never gained traction.
With Trump at the helm and his ambitious promises to reshape the U.S. economy, the world is now watching to see how this sovereign wealth fund evolves—and whether it will deliver on its lofty goals.
