The focus of the markets has focused on the start of the week on the impact of tariff Federal sovereign for the country, a tool that seems that the president wants to use in the political front.
Trump has signed an executive order that was necessary for the government to get down to work, and start the first non -state sovereign fund for the entire United States. Those responsible for implementing it, as the president said, will be the secretary of the Treasury, Scott Besent, and the nominee for Secretary of Commerce, Howard Lutnick. Besent has declared that the fund will be ready in the next 12 months, and considers that it is a matter of “great strategic importance” for the country.
Lutnick, meanwhile, has suggested that the investment vehicle could be used to buy the Tiktok business in the United States, one of the possible exits that have been raised for the continuity of the Chinese application in the US territory. If so, it is confirmed that the government would be planning to use the sovereign fund as a political tool.
In fact, the government is not hiding its intentions in this regard: Elon Musk has already been publicly inclined to use the financial corporation for international development (a public institution created in 2019 to compete with China and its silk route to the Silk to the time to support the development of foreign countries) as a sovereign fund. In this way, the new fund would be distinguished from the state sovereign funds that already exist in the United States (there are 20 states that have them), which use their income due to the sale of raw materials to support the accounts of the State and diversify their income .
No details about your financing
The project of a federal sovereign fund for the United States has already been on the table in the electoral campaign of the new Republican president, but there are several unknowns that make some analysts propose if this initiative of Trump and his team makes sense.
The first is that, as already explained, there are already sovereign funds similar to that of Norway, or Saudi Arabia, in the United States, with an important difference: these countries have a commercial, or fiscal surplus, which allow the financing of These investment vehicles.
The great unknown presented by Trump’s project is financing. Would new debt be issued to finance it? Will Trump glimpse, tariff income? If so, your promise to use these income to reduce the deficit, or to lower taxes, is questioned. To date, there are no details about how the project has been structured in this regard.
In fact, the approach of a sovereign fund with these characteristics clashes in a certain sense with the Trump project to defend US interests. If Trump’s plan is to reach international financing to the United States, and increase investments of this type in the country, he would be doing the opposite: he will use the money of the US taxpayer to invest in foreign companies. If the fund is not financed via deficit or taxes, the president’s plan could find criticism since he would be using capital that can be used to “make large America again” in investments outside its borders. Of course, it would allow the country to diversify its long -term sources, and increase its international presence.
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