Donald Trump has announced he will halt the minting of pennies, a decision that has raised eyebrows across the nation.
Quick Takes
- Donald Trump has ordered discontinuation of penny minting over cost inefficiencies.
- The cost of producing a penny has surged to 3.7 cents each.
- FY2023 saw US taxpayers burdened with over $179 million for penny production.
- The penny halt casts ambiguity over price rounding practices.
Rising Production Costs Trigger Action
President Donald Trump has instructed the U.S. Treasury to stop minting new pennies, citing excessive production costs. The U.S. Mint reported that the cost to produce a single penny has soared to more than 3 cents, accumulating an expansive loss for taxpayers. The fiscal implications are startling, with the production costs surpassing $179 million in fiscal year 2023 alone.
Historically, making pennies has cost more than their face value, driven by the increasing prices of zinc and copper that compose the coin. This financial misalignment underscores the need for a cost-saving strategy, influencing Trump’s decision. However, his authority to decisively end penny production remains questionable, as Congress traditionally handles the minting and regulation of currency.
Breaking News: President Trump ordered the Treasury to stop minting pennies, saying the coins cost more to produce than their face value. https://t.co/nbUYA1aDL9
— The New York Times (@nytimes) February 10, 2025
Potential Rounding Adjustments and Global Trends
The U.S. is not alone in reassessing the utility of low-denomination coins. Several global counterparts, including Canada and the Netherlands, have already phased out their smaller coins. This move could stir debates on price adjustments and lead to a new norm of rounding cash transactions. For many, this transition seems straightforward, given the similarity of adjustments other countries have experienced.
For proponents, eliminating the penny represents an opportunity for speedier transactions and administrative simplicity, eliminating the inefficiencies involved with a coin rarely used in transactions and mostly stashed away in jars and piggy banks.
Trump’s Track Record of Fiscal Adjustments
Ending the production of pennies is part of a broader agenda under Trump’s leadership. This administration aims for drastic cost-cutting measures, seeking savings exceeding $2 trillion. Under the auspices of the Department of Government Efficiency, led by Elon Musk, this action aligns with several other initiatives trying to curb wasteful spending.
“The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023,” said Doge
This penny eliminating policy marks a practical financial recalibration aimed directly at minimizing redundant expenditure.
