Trump's Surprise Penny Drop Sparks Debate

The penny, America's humble one-cent coin, faces an uncertain future as President Trump orders its production to halt, citing high costs and diminishing utility. Legal scholars assert his authority to make this decision, yet strong opposition, including the zinc lobby, persists. Past global experiences suggest minimal public impact.

President Donald Trump's unexpected announcement to halt the production of the penny has reignited debates over the future of the one-cent coin. The decision is based on the high costs associated with minting pennies, which the US Mint reports to be nearly four cents per coin.

Despite its long-standing presence, legal expertise supports the administration's authority to make such a change without congressional approval. Harvard's Laurence H. Tribe notes that the Treasury Secretary holds the capacity to adjust minting amounts based on national needs.

The push to eliminate the penny has faced strong resistance, particularly from the zinc industry. Nevertheless, past experiences in countries like Canada and Australia suggest that eliminating the coin's equivalent caused little public disruption.

(With inputs from agencies.)