Trump, a master trader, may face new conflicts of interest: experts

During the campaign, Donald Trump sold clothing and souvenirs to promote his candidacy for the presidency, in what ABC experts described as an unprecedented attempt to commercialize his political platform.

Now, after his election triumph, the president-elect is again trying to cash in on his personal brand with a new line of merchandise, ranging from a pair of Trump Landslide boots for $299 to a special inaugural edition of his God Bless for $69.99. Bible USA.

As the former president prepares to return to the Oval Office, experts have warned that the opaque structure of the companies that make these products could create new conflicts of interest for Trump – with few public details about who Trump does business with or how profitable it is.

“We’ve never seen presidential merchandise like this,” said Jordan Liebowitz, vice president of the nonprofit watchdog group Citizens for Responsibility and Ethics in Washington. “Tracing partners is very difficult unless they come forward and it is impossible to know for sure.”

Compared with his $3 billion stake in his social network and his multimillion-dollar buildings, Trump’s licensing deals make up only a fraction of his portfolio, but Liebowitz said his opaque deals could be ethical “black boxes” that elude outside scrutiny.

Without knowing who the president-elect does business with, it is impossible to know whether he can use the power of his office to improve his bottom line or benefit his business partners or those who invest in him, Liebowitz said.

Trump entered into licensing agreements through two companies, CIC Ventures LLC and CIC Digital LLC, which are wholly owned by The Donald J. Trump Revocable Trust. According to his 2023 financial disclosure, Trump earned more than $7 million through CIC Digital LLC, which entered into a licensing agreement to sell non-fungible tokens, or NFTs.

Trump used CIC Ventures LLC to make more than $5 million from selling bibles and books, while how much Trump made from other deals, such as his watches and shoes, has not yet been disclosed.

These companies quickly launched new products after Trump won the election. Trump Sneakers has unveiled a full line of “Trump Won” shoes, including a gold pair of low-tops for $499. Trump Coins offered a one-ounce “Gold Victory Medallion”—with the president-elect’s face and signature imprinted in solid gold—for $3,645.47, over a thousand dollars more than the price of an ounce of gold. And Trump Watches introduced the “Victory Collection” with prices ranging from $599 to $1,299.

“Donald Trump proved that his greatest talent was selling mostly junk products, and he hasn’t stopped,” said Robert Weissman, co-president of the progressive watchdog group Public Citizen.

On Wednesday, Trump announced a new plan to sell electric and acoustic guitars to Trump Guitars.

The instruments, which are inlaid with the phrase “Make America Great Again” in pearl, start at $1,250. The limited edition Trump signed guitars sell for $11,250. Details about where the guitars are made and how much profit, if any, Trump makes from the sales were not immediately available, and Trump Guitars did not respond to a request for comment.

Products such as Trump’s sneakers and watches are different from the items Trump is selling through his campaign website, which offers everything from “Make America Great Again” hats to Christmas decorations. Profits from these purchases go to Trump’s joint fundraising committee, which is subject to strict reporting requirements for political donations.

But outside companies that Trump licenses to sell his other products are not subject to oversight. It’s an approach Trump has taken for decades: making money from his brand by selling everything from steak to vodka in a limited capacity, licensing out the design, production and distribution of products to individual companies about which little is often known. .

For someone in power, such as the president, such an arrangement could create “areas of potential concern,” Weissman said.

Details about the terms of Trump’s agreements with trading companies such as JBCZ Group LLC for his coins or TheBestWatchesonEarth LLC for his watches have not been disclosed, and the limited liability companies are registered in states that provide few details about the companies’ ownership.

Some Trump merchandise, such as his NFTs or watches, are also selling for incredibly high prices, allowing individuals, including potentially foreign actors, to funnel money to Trump, Liebowitz said. Trump Watches is currently offering the Trump Victory Tourbillon for $100,000.

“It seems like a way to put money directly into his pockets,” said Liebowitz, who believes the watch is likely worth a fraction of the asking price. “This is an opportunity to give him money directly and let him know about it.”

Trump watches, Trump coins, Trump sneakers and God Bless Bible USA did not respond to ABC News’ request for comment, nor did a spokesman for the Trump transition team.

When Trump entered the White House in 2017, he stepped down as a trustee of the Donald J. Trump Revocable Trust and handed control over to his sons and a business partner to avoid potential conflicts of interest. This setup allowed Trump to continue to profit from his business while relinquishing control over day-to-day operations and decisions.

Although he regained control of the Trust when he left office in 2021, he is expected to hand over control again when he returns to office in January – although experts say the arrangement is unlikely to shed further light on his licensing deals.

“It’s not limited by any rules or regulations,” Weissman said. “He will reveal what he wants to reveal.”

And with two months left in Trump’s presidency, watchdog groups are concerned that lax enforcement of ethics rules could become endemic throughout the federal government unless Trump sets a strong example.

“Things like this leak out,” said Scott Amy, general counsel for the nonprofit Government Accountability Project. “It would be great to lead from the top.”