The U.S. Treasury will stop producing new pennies following President Donald Trump’s directive to reduce wasteful spending. Existing penny blanks will be used up, but no additional one-cent coins will be minted, leading to cash transactions being rounded to the nearest nickel.

Each penny costs more than three cents to produce, prompting Trump to call the coin wasteful and order its elimination. The Treasury estimates $56 million in immediate taxpayer savings. However, attention now turns to the nickel, which costs nearly 14 cents to make. Retailers and economists say eliminating the penny could speed up transactions and modernize currency use, following the example of countries like Canada.

Trump Orders Treasury to Halt Penny Production, Citing Wasteful Spending