In a new turn for American economic policy, Donald Trump has signed a presidential decree that creates an unprecedented national sovereign fund in the United States. This financial instrument would aim to stimulate economic growth, to finance strategic infrastructure and potentially to allow the acquisition of Tiktok. The platform, in the Washington viewfinder for national security reasons, must imperatively separate from its Chinese shareholders to continue its activities on American soil. Thanks to its inspiration from models of sovereign funds from China, Norway or Singapore, the Trump administration hopes to reduce the dependence of the United States to loans and strengthen its global economic influence. However, the implementation of such a mechanism triggers many questions: how is a country that accumulates a massive budget deficit could finance such a project? What would be the geopolitical implications of direct intervention in a world -scale technological company? Between economic ambition and diplomatic issues, this sovereign fund is a major change which could redefine the role of the American state on the international scene.
An unprecedented economic project in the United States
Donald Trump defends the creation of the sovereign fund as a strategic response to the country's economic challenges. He says he wanted to “monetize the assets of the United States' balance sheet” to finance major national projects, and to reduce dependence on debt. To materialize this ambition, the government relies on a combination of liquid assets and resources already present in the territory. “We will make these assets available to the American people”, assured The Treasury Secretary, Scott Bessent.
Unlike traditional sovereign funds, generally fueled by oil, gas or large budgetary surpluses, this American fund could rely on customs prices and alternative forms of taxation. In addition, this approach provokes strong questions, in particular on its financial viability. With a colossal budget deficit, the United States does not have surpluses that allow nations such as Norway, Singapore or China to effectively manage their sovereign funds.
The idea of an investor state also causes contrasting reactions to the congress. Some elected officials see it as an opportunity to strengthen the country's economic autonomy, while others denounce a risk of politicization of the economy. The management of public assets challenges for transparency and possible drifts. Added to this is a major strategic issue: if this fund was born, it would profoundly modify the economic role of the federal state, a subject that deeply divides the American political class.
A strategic lever for Tiktok and American influence
Beyond infrastructure projects, the American sovereign fund could be used to finance an equity investment in Tiktok, an option that Donald Trump spoke several times during his presidential campaign. This initiative is part of a context of increasing tensions between Washington and Beijing, while the application is accused of being a espionage tool in the service of the Chinese government. The American authorities now demand that Tiktok separate from its Chinese shareholders to continue its activities in the United States. “We want to make sure that Tiktok remains in good hands, without interference from China,” insisted Trump, and suggests a possible acquisition by American actors supported by the State.
The entry of the US government into the capital of Tiktok, however, creates many legal and ethical concerns. Several experts warn against the risk that an influential platform directly controls, in particular in a country where freedom of expression and neutrality of networks are fundamental principles. This could create a dangerous precedent, which would open the door to increased intervention by public authorities in the private sector and the social media market.
On the diplomatic level, such an acquisition would risk further deteriorating relations between Washington and Beijing. China could see a direct interference in its economic interests, which would accentuate the climate of distrust already existing between the two powers. This confrontation goes beyond Tiktok. It reflects a wider struggle of influence on the mastery of digital technologies and access to data. If this project results, it could change the balance of forces in the Sino-American rivalry and redefine the rules of the game in terms of control of digital platforms.
With this project, Donald Trump aims to transform the economic policy of the United States and is inspired by models of sovereign funds adopted by nations which have significant financial reserves. However, the absence of budgetary surplus and the extent of the American deficit pose a major challenge. The success of such a fund would depend on its governance and transparency, but also on its ability to attract capital and generate lasting yields. If this mechanism were to be put in place, it could deeply modify the role of the federal state, and would give it an unprecedented financial lever on the international scene. It remains to be seen whether this vision will survive political resistance, budgetary constraints and the geopolitical implications that it already triggers.
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