Trump wants to end the production of Penny. Does that affect consumers?

president Donald Trump He is about to end production of a new penny, and recently told Treasury Secretary Scott Bescent to make it happen.

Trump revealed late Sunday night that he “instructed U.S. Treasury secretaries to stop producing new pennies,” saying, “for a long time, the US has been minting pennies that cost literally more than two cents.” He insisted, “That’s right” is useless! ”

The move raises the question of how American consumers could be affected, and according to one expert, the impact can be ignored.

“I don’t think it would have an impact About Consumers. I think that’s very wise as no one uses penny. David Bahnsen, founder of Bahnsen Group, told Fox Business. I’m actually heading backwards about that mathematics. ”

Trump is “right” to the US to throw away “silly” pennies, says Kevin O’Leary

US Mint’s latest annual report showed that in 2024 the cost of creating and distributing penny was 3.69 cents.

US Mint shipped 3.17 billion pennies last year. The total cost of these pennies was $117 million, significantly higher than the total amount of $31.7 million, according to the report.

“In terms of affecting consumers, does that make the difference in their spending habits that do not change accurately to the extent that it exists at all?

Canada left the Penny version more than a decade ago, with other countries like Australia, New Zealand and Sweden taking similar steps before that. In Canada, after the government began phased out pennies, it went up and down to five cents nearby, making it common to cash transactions.

Trump says he instructed us to stop building new penny: “This is so useless!”

Bahnsen recently said that cash payment environments are “more likely to occur in digital payment environments.”

Report released last summer Federal Reserve Financial Services We found that 32% of payments in October 2023 used credit cards, while similar, slightly less shares (30%) used debit cards. Meanwhile, cash payments represent 16% of transactions, according to the report.

The Canadian government said in it 2012 Economic Action Plan Removed penny in New Zealand, Australia and other countries “did not cause a price increase.”

The US, which will halt production of new pennys, will have little impact on the hints, Bernsen said.

He also said that existing pennies are still in circulation, but “But you’re talking about a lot of collectable items, not consumer items, not the trading currency people are paying for. ”.

“In the end, I think President Trump’s motivation here is to be more efficient and the Treasury is wasting a lot of money that makes pennies that don’t have real commercial use.” Baansen said Fox Business. “This is not an event of Earth-shattering, but it’s slightly more efficient and that’s the job of the Ministry of Finance.”

A typical St. American, who is critical of Trump’s efforts, in a press release in late January, claimed that he would “not save government money” to throw away pennies.

“Many mint overhead costs remain and need to be absorbed by other coins without penny,” said executive director Mark Weller. “There will also be a greater demand for expensive nickel, meaning even more costs.”

How Trump Gets Penny – and What Can Come Next For Your Pocket Book Changes

According to CNN, the group has received a large amount of funds from Artazn. The company reportedly supplies blanks used to produce mintcoin.

The Americans in the general cent proposed that the government “review how mint allocates its overhead and focus on reducing the cost of production of nickel.”

The agency said last year, mint cost nearly 13.8 cents to produce nickel.

There are also groups I was pushed back Penny has no value and “disproportionately affects people without banks or methods of non-cash payments, contrary to the argument that they insisted on a “rounding tax” that stems from removing a cent denomination.