Trump's presidency raises fresh conflict of interest concerns

 

US President-elect Donald Trump, alongside Senator Marco Rubio of Florida applaud during the third day of the 2024 Republican National Convention at the Fiserv Forum in Milwaukee, Wisconsin, on July 17, 2024. [AFP]

Donald Trump's impending White House return poses questions once again about conflicts of interest related to his business empire, with new cryptocurrency and other ventures raising fresh concerns.

The billionaire's stunning political comeback is "rocket fuel for the Trump Empire," said Mark Hass, an Arizona State University marketing professor.

After almost a decade of making headlines around the globe, Trump's "brand is... sort of the Nike or Apple of politics," he said.

"Everybody in the world knows what it stands for.

Trump no longer holds an executive title at the Trump Organization, which has been run by his two eldest sons since his 2016 election win.

However, the 78-year-old has retained his stake in the family business via a trust, which during his first term in office was managed by a third party.

After he left the White House, Trump made himself a co-administrator of the trust. He has yet to say if he will relinquish the position when he takes office again in January.

Regardless, according to Hass, Trump's association with his businesses will persist.

"Maybe he does not have a direct role in it, but you couldn't get as close to the business without directly running it, than having your sons run it and to have your name on it," he said.

Tim Calkins, a Northwestern University marketing professor, said that Trump's victory has likely revived the family's brand.

"Brands are associations and at the moment the Trump brand is associated with winning, comebacks and momentum," he told AFP.

"Trump is still a very polarizing brand, but the election outcome has strengthened the positive associations," he said.

Since Trump's last term in office, the family business has struck substantial deals overseas, with several linked to Saudi Arabia.

The Trump Organization has partnered with Saudi developer Dar Global on a high-rise apartment complex in the Red Sea city of Jeddah, a luxury building in Dubai and a hotel complex in Oman.

It has also signed an agreement with LIV Golf, controlled by the Saudi sovereign wealth fund, and has hosted several LIV events on Trump-owned golf courses.

Haas said that such partners understand the contracts give them "influence" over Trump, and will ultimately produce financial benefits for him.

Stock price

Trump's conflicts of interest will be "a lot worse" than his last presidency, said Jordan Libowitz, vice president of communications at CREW, a government ethics watchdog group.

Libowitz pointed to Trump's expanded portfolio, which now includes a media group trading on the public market.

"There's nothing stopping, say, the Saudi wealth fund, the Emirati wealth fund, the Kuwait wealth fund -- which all do major investments in technology stocks... from pouring hundreds of millions of dollars into the stock," he said.

Trump owns nearly 53 per cent of the Trump Media Technology Group (TMTG), the parent company of his Truth Social platform.

That stake is currently valued at around $3.8 billion -- making up the majority of his estimated $5.9 billion wealth, according to Forbes.

Foreign investors buying up the stock could raise its price greatly, said Libowitz. "But they can also crash it by selling all en masse."

The New York Post has reported, citing members of Trump's campaign team, that billionaire ally Elon Musk is considering acquiring Truth Social through X, his platform formerly known as Twitter.

The president-elect has also recently ventured into the world of cryptocurrencies, joining his sons in backing a new exchange platform called World Liberty Financial.

Trump is not a shareholder or board member of the start-up but will receive compensation for the platform using his name.

"It's still not clear how it works or what it's doing," Libowitz said. "But cryptocurrency is notorious for its ability to funnel money anonymously, particularly from overseas."

CREW is considering filing suit against Trump -- as it did during his first administration -- arguing that the president is receiving payments from foreign clients in violation of the US Constitution.

The group's previous suit eventually made its way to the Supreme Court, but it was dismissed because Trump had already left the White House.

"I think it'll be a much more transactional presidency because there are no obstacles," Hass said of Trump's second term.

"Trump, if nothing else, understands how to monetize his name and his fame."