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Americans May Find It Harder to Spend a Penny: A-level Business In the News

Mike Mills

13th November 2025

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The U.S. Mint will stop producing pennies after making one final batch.

Following over 230 years of continuous manufacturing, the United States Mint concluded penny production on 12th November 2025.

President Trump initiated this decision in February, highlighting that production costs had reached nearly four cents per coin, substantially exceeding its one-cent face value.

The decision is focused on reducing inefficiency. There are approximately 300 billion pennies in circulation but only about 40% of these are estimated to be in use.

The vast majority are unused, often in household piggy banks. As a result, continued manufacture appeared wasteful and officials estimate annual savings of $56m from ceasing production.

The rise in electronic transactions and reduction in use of cash is a contributory factor in the decision. Canada, New Zealand and Australia have all made similar decisions in recent years.

However, there are some challenges, including the possibility of increased costs for shoppers.

Attention now focuses on the nickel, which is worth 5 cents but costs nearly 14 cents to produce. This would have a greater impact on consumer costs if eliminated

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Mike Mills

Mike is an experienced Head of Department, teacher and A-level Business examiner. Mike is also a popular presenter on tutor2u CPD courses and student workshops.