President Donald Trump announced on Sunday that he has directed the US Treasury to cease the minting of new pennies, describing their production as “wasteful.”

“For far too long the United States has minted pennies which literally cost us more than 2 cents,” Trump said in a Truth Social post Sunday night. “Let’s rip the waste out of our great nations budget, even if it’s a penny at a time.”

As of now, there has been no official statement from the Treasury regarding the cessation of penny production, and they did not respond immediately to requests for comment. It remains unclear whether the president possesses the authority to unilaterally remove a coin from circulation, as the production of coins is managed by Congress and the US Mint, which operates under the Treasury Department.

The cost of producing and distributing pennies and nickels has exceeded their face value for nearly 20 years, according to the US Mint’s annual report. In the 2024 fiscal year, it costs approximately 3.7 cents to produce a penny—an increase of 20.2 per cent—and 13.8 cents for a nickel, which represents a 19.4 per cent rise. The US Mint produces billions of pennies annually, utilizing copper and zinc in the process.

Several countries, including Brazil, Chile, and China, have stopped producing low-denomination coins, while Canada discontinued the penny in 2012.

Supporters of retaining pennies argue that eliminating them could lead to inflation, as consumers might be forced to round up prices in cash transactions. For instance, an item priced at $10.08 would be adjusted to $10.10, potentially increasing overall spending.