“Under the direction of U.S. President Donald Trump, the production of the one-cent coin (penny) has been officially halted. On the 12th (local time), Reuters reported that the Philadelphia Mint produced the last one-cent coin for circulation that day.
In February, President Trump instructed the Treasury Department to cease new production of the one-cent coin due to the manufacturing cost exceeding its face value. The U.S. Treasury estimated that it costs 1.69 cents to make a single one-cent coin and projected an annual cost saving of approximately 56 million dollars from the halt in production.
While production will cease, existing one-cent coins will continue to be used as legal tender. The Treasury believes there are currently about 300 billion one-cent coins in circulation. Additionally, there are predictions that as the supply diminishes over time, retailers will adjust prices in five-cent increments.
The U.S. one-cent coin has been minted for 232 years since its first issuance in 1793. Although regular production for circulation will end, commemorative one-cent coins for collectors will continue to be issued in limited quantities.
Reuters also noted that countries like Canada, Australia, Ireland, and New Zealand have previously stopped producing their lowest denomination coins for reasons such as cost savings.”