Tue 04 Feb 2025 ▪
6 min read
▪
by
Luc Jose A.
In an unprecedented turn for American economic policy, Donald Trump has signed a presidential decree that creates a national sovereign wealth fund, a groundbreaking initiative in the United States. This financial instrument aims to stimulate economic growth, fund strategic infrastructure, and potentially enable the acquisition of TikTok. The platform, under scrutiny from Washington for national security reasons, must divest itself of its Chinese shareholders in order to continue operations on American soil. Drawing inspiration from the sovereign wealth fund models of China, Norway, and Singapore, the Trump administration hopes to reduce U.S. dependence on borrowing and enhance its global economic influence. However, the establishment of such a mechanism raises numerous questions: how could a country that is accumulating massive budget deficits finance such a project? What would be the geopolitical implications of a direct intervention in a globally significant technology company? Balancing economic ambition with diplomatic challenges, this sovereign wealth fund represents a major shift that could redefine the role of the American state on the international stage.