Trump Urges Debt Payment Before U.S. Sovereign Wealth Fund Launch

President Trump suggests paying off the U.S. debt before establishing a sovereign wealth fund, marking a potential shift from earlier plans. Trump aims to use revenues from tariffs on imports for the fund. The U.S. debt exceeds $36 trillion, raising challenges for fund creation which requires congressional approval.

In a press conference in Doha, President Donald Trump emphasized the importance of addressing the United States' burgeoning debt before moving ahead with plans to establish a sovereign wealth fund. This stance indicates a shift from earlier intentions to create the fund within the year.

Despite an executive order signed in February aimed at setting up the fund, Trump argues the country's fiscal focus should be on reducing the national debt, now over $36 trillion according to the Treasury Department. The President suggests using tariff revenues as a foundation for the fund.

Traditionally, sovereign wealth funds are financed by budget surpluses, a contrast to the U.S.'s current deficit. Hence, the proposal would require approval from Congress, akin to wealth strategies seen in the Gulf region, renowned for their substantial funds amassed in debt-free contexts.

(With inputs from agencies.)