President Trump Stops Penny Production and Announces New Tariffs
President Trump Announces End to Penny Production
United States President Donald Trump has decided to stop the production of pennies, calling it a wasteful practice due to their high production cost. He instructed Treasury Secretary Scott Bessent to halt the minting of new pennies, as they cost more than their face value to produce. Trump shared this decision on Truth Social after attending the Super Bowl.
Cost Concerns
Trump highlighted that pennies cost over 2 cents to make, which is inefficient for the nation's budget. The Department of Governmental Efficiency reported that in FY2023, the penny cost over 3 cents to produce, totaling $179 million for taxpayers.
New Tariffs on Steel and Aluminum
In addition to the penny announcement, Trump revealed new tariffs on steel and aluminum imports. Starting Monday, a 25% tariff will be imposed on all steel and aluminum entering the United States. Trump explained this move as a reciprocal measure against countries that charge the U.S. for imports.
Doubts Revealed
Penny Production
Penny production refers to making the small coins called pennies, which are worth one cent in the United States. They are similar to the one rupee coin in India.
Tariffs
Tariffs are extra charges or taxes that a country adds to goods coming from other countries. It's like when you have to pay extra money to buy something from another country.
Steel and Aluminum Imports
Steel and aluminum imports are when a country buys steel and aluminum from other countries. Steel and aluminum are materials used to make things like cars and buildings.
Treasury Secretary
The Treasury Secretary is a person in the U.S. government who is in charge of money matters, like how the Finance Minister in India handles the country's finances.
Scott Bessent
Scott Bessent is the name of the person who was the Treasury Secretary at the time President Trump made this announcement.
Department of Governmental Efficiency
The Department of Governmental Efficiency is a part of the U.S. government that looks at how well the government is working and tries to make it better, like making sure money isn't wasted.
FY2023
FY2023 stands for Fiscal Year 2023, which is a way of keeping track of the government's budget and spending for a year, similar to how we have financial years in India.
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