Trump Faces Backlash After Proposing a Sovereign Wealth Fund Bankrolled by Tariffs
[Justin Lane/Pool via AP Photo]
Former President Donald Trump sparked controversy on Thursday after suggesting that the United States should establish a sovereign wealth fund, financed by revenue from import tariffs. During a speech and brief Q&A session, Trump expressed frustration that the U.S. is one of the few countries without such a fund, which is typically state-owned and invests public money into various assets.
“Why don’t we have a wealth fund?” Trump asked. “Other countries have wealth funds. We have nothing. We are going to have a sovereign wealth fund. We will put tremendous amounts of money through all this money we’ll be taking in through tariffs.”
While Trump framed the idea as a way to generate national wealth, the proposal drew immediate backlash from critics who raised concerns about its implications. Commentators questioned whether Trump would use the fund for personal gain, with some referring to it as a potential “slush fund.”
Tim O’Brien, a former Trump biographer, speculated on social media that Trump’s remarks likely translate to, “I’d like to create a slush fund I can control from the Oval Office.” Attorney Bradley Moss echoed that sentiment, simply stating, “He wants a slush fund.”
Critics also pointed out that Trump’s plan reflected a misunderstanding of how tariffs function. Joe Banner, the former president of the NFL, called the idea “absolutely insane,” noting that it contradicted decades of Republican advocacy for smaller government and free markets. “Here is their presidential nominee proposing the least Republican big government idea I have heard anyone in politics ever propose,” Banner remarked.
Rep. Sean Casten (D-IL) also weighed in, highlighting the flawed logic behind the proposal. “To be clear here: the implication is we tax imported goods, raise prices to U.S. consumers, and DO NOT spur a domestic industry… since that’s the only scenario where this BS fund gets funded,” he explained.
Others, including microbiologist Kim Shepherd, criticized Trump’s lack of understanding regarding tariffs. Shepherd warned that Trump’s plan would effectively create “a central slush fund/bank which HE controls and can spend on himself.”
Legal analyst Allison Gill took the criticism further, suggesting that Trump’s vision was reminiscent of authoritarian economic control. “He wants a state-run bank that he controls. Next, he’ll seize the means of production,” Gill quipped. As the debate surrounding Trump’s proposal continues, concerns about the potential misuse of such a fund and the broader economic implications remain front and center.
