Trump has made millions hawking merchandise. Now he could face conflicts of interest
On the campaign trail, Donald Trump hawked apparel and keepsakes promoting his presidential bid in what experts ABC spoke with characterized as an unprecedented effort to commoditize his political platform.
Now, after his triumph at the polls, the president-elect is again seeking to cash in on his personal brand with a fresh line of goods, from a pair of $299 "Trump Landslide" boots to a $69.99 special inaugural edition of his God Bless the USA Bible.
As the former president prepares to return to the Oval Office, experts warned that the opaque structure of the companies that produce these items could create fresh conflicts of interest for Trump -- with few public details about who Trump is in business with and how much he profits.
"We've never seen a president merchandise like this," said Jordan Libowitz, a vice president at Citizens for Responsibility and Ethics in Washington, a nonprofit watchdog group. "Tracking partners is very difficult unless they come forward, and there's no way to know for sure."
Compared to his $3 billion stake in his social media company and his multimillion-dollar buildings, Trump's licensing deals comprise only a fraction of his portfolio -- but his opaque deals can be ethical "black boxes" that escape outside scrutiny according to Libowitz.
Without knowing who the president-elect is in business with, it's impossible to know if he might use the power of his office to help his bottom line or benefit his business partners or whoever is contributing money to him, Libowitz said.
Trump has entered into the licensing agreements through two companies -- CIC Ventures LLC and CIC Digital LLC -- that are fully owned by The Donald J. Trump Revocable Trust. According to a 2023 financial disclosure, Trump made more than $7 million though CIC Digital LLC, which entered a licensee agreement for the sale of nonfungible tokens or NFTs.
Trump used CIC Ventures LLC to make more than $5 million through bible and book sales, and information is not yet public about how much Trump has made from other deals like his watches and shoes.
Those companies quickly launched new items following Trump's electoral victory. Trump Sneakers unveiled a full line of "Trump Won" footwear, including a gold pair of low-top sneakers for $499. Trump Coins unveiled a one-ounce "Victory Gold Medallion" -- with the president-elect's face and signature pressed in solid gold -- for $3,645.47, a thousand-dollar upcharge compared to the price of an ounce of gold. And Trump Watches unveiled a "Victory Collection" priced between $599 and $1,299.
"Donald Trump proved his greatest skill was as a salesman, 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 with a company called "Trump Guitars."
The instruments -- which include the phrase "Make America Great Again" in pearl inlay -- start at $1,250. A limited version of the guitars signed by Trump is on sale 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.
Items like Trump sneakers and watches are distinct from the merchandise Trump sells through his campaign website, which offers everything from Make America Great Again hats to Christmas ornaments. The profit from those purchases goes toward Trump's joint fundraising committee, which is subject to rigorous reporting requirements for political contributions.
But the external companies that Trump licenses to sell his other items aren't subject to oversight. It's an approach that Trump has taken for decades: Making money from his brand by selling everything from steaks to vodka with limited involvement, by outsourcing the design, production, and distribution of the goods under license to separate companies, about which little is often known.
For someone in power, like the president, that arrangement can create "areas of potential concern," according to Weissman.
Details about the terms of Trump's agreements with the merchandise companies -- such as JBCZ Group LLC for his coins or TheBestWatchesonEarth LLC for his watches -- are not public, and the LLCs are registered in states that offer few details about the companies' ownership.
Some of Trump's merchandise -- such as his NFTs or watches -- also sell for wildly high prices that create an avenue for individuals, including potentially foreign actors, to channel money to Trump, according to Libowitz. Trump Watches is currently offering a "Trump Victory Tourbillon" watch for $100,000.
"That kind of seems like it is a way to put money directly in his pockets," said Libowitz, who believes the watch is likely worth a fraction of its asking price. "It's an opportunity to give money directly to him and let him know that."
Trump Watches, Trump Coins, Trump Sneakers, and God Bless The USA Bible did not respond to ABC News' request for comment, and nor did a spokesperson for Trump's transition team.
When Trump entered the White House in 2017, he resigned as the trustee of Donald J. Trump Revocable Trust and passed control to his sons and a business partner to avoid potential conflicts of interest. The setup allowed Trump to still profit from his businesses while relinquishing control of day-to-day operations and decisions.
While he regained control of the Trust when he left office in 2021, it's expected that he'll again hand over control when he returns to office in January -- although experts say the arrangement is unlikely to shed additional light on his licensing deals.
"He's not constrained by any norms or regulations," said Weissman. "He'll disclose what he wants to disclose."
And with Trump's presidency two months away, watchdog groups worry that weak enforcement of ethics rules could become pervasive throughout the federal government if Trump doesn't set a strong example.
"This kind of thing trickles down," said Scott Amey, general counsel at the nonprofit Project on Government Accountability. "It would be great to lead from the top."
