Trump orders halt to penny production, citing cost concerns

• Donald Trump Stops Penny Production
• Excessive Cost, Treasury Says
• Musk Supports Elimination

Donald Trump, President of the United States, announced that he has ordered the Treasury Department to stop the production of new pennies, declaring:

“It’s a waste!” «For too long, the United States has minted pennies that literally cost more than two cents to make,» Trump wrote on Sunday night on his Truth Social network.

«Let’s eliminate the waste from our great national budget, even if it’s one penny at a time,» the president added to justify his decision.

Although Trump stated that making a penny costs two cents, the U.S. Mint reports that each unit cost almost 3.7 cents in fiscal year 2024, resulting in a loss of $85.3 million from producing 3.2 billion coins.

Trump and DOGE Launch Cost-Cutting Offensive, Sparking Controversy

The order is part of the offensive of his new administration to introduce changes by decree on issues such as immigration, gender policy, and public spending reduction, led by the Department of Government Efficiency (DOGE).

Elon Musk, who oversees DOGE, supports the elimination of the penny as a necessary step to cut costs and modernize the American economy.

However, «See illegal revisions at the Donald Trump checkpoint» reflects the controversy surrounding this action.

Some experts point out that the president might require Congressional approval to abolish a coin, as its size and composition are regulated by law.

The debate to eliminate the penny has been ongoing in the United States for years, with lawmakers proposing to suspend its production, withdraw it from circulation, or round prices to five cents.

Countries like Canada have stopped minting their lowest-value coins without significant negative impacts, encouraging those who support the measure in the U.S.

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«For too long, the United States has minted one-cent coins that literally cost us more than 2 cents, this is wasteful!» Trump insisted, describing the measure as a cost-cutting and efficiency-promoting initiative.

Existing coins will continue to be legal tender, while the Federal Reserve manages their circulation and the government considers a boost to electronic payments.

Some businesses might apply rounding to five cents in their transactions, replicating the model of other countries that have eliminated their lowest denomination coins.

The strategy of DOGE, endorsed by Elon Musk, aims not only to reduce costs but also to promote a smoother transition to digital payments in the United States.

SOURCE: EFE/ El Imparcial.

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