Millions in Losses for Retailers after US Halts Penny Production

Retailers, gas stations, and fast-food chains across the United States are scrambling to adjust prices after President Donald Trump’s decision earlier this year to halt production of the U.S. one-cent coin, a move that has thrown cash transactions into disarray and cost businesses millions.

Major retail chains are struggling to cope with the rapid disappearance of pennies from circulation. Many have resorted to rounding down prices to avoid angering customers or violating local pricing laws, a small adjustment that, at scale, translates into significant financial losses for high-volume retailers.

The National Retail Federation (NRF) said the shortage has affected both urban and rural stores without any clear geographic pattern.

“Any retailer handling cash is feeling the strain,” said Dylan Jeon, the NRF’s director of government relations, noting that the federation’s members include Walmart, Target, Macy’s, and Old Navy.

Some major chains have taken emergency measures to manage the transition.

In Pennsylvania, Sheetz stores have posted signs explaining that the U.S. Mint will no longer produce pennies, urging customers to use electronic payments or donate rounding differences to charity.

In Wisconsin, the QuikTrip chain announced it would round all cash transactions down to the nearest five cents. Meanwhile, Kroger and CVS outlets have asked customers to pay exact amounts to avoid change shortages.

Despite growing confusion, the U.S. Treasury Department has not responded to media requests for clarification on the policy or its implementation guidelines, retail groups say.

Several countries, including Canada, Australia, Ireland, and New Zealand, have phased out their lowest-denomination coins in recent years, rounding cash payments to the nearest five cents to cut production costs and streamline transactions.

However, implementation in the U.S. is complicated by state-level consumer protection laws. States like California, New York, and Illinois require retailers to return exact change, creating legal uncertainty over rounding practices.

While President Trump’s order officially ended penny production, Congress retains ultimate legislative authority over U.S. currency.

The NRF has urged both the administration and lawmakers to issue unified guidance. “What retailers need now is clarity on how rounding should work, whether up or down,” Jeon said.

In a letter to Congress in late September, groups representing gas stations and major retailers warned that without swift action, cash transactions could soon become legally unworkable in several states.

Love’s Travel Stops, which operates more than 640 locations across 42 states, said it would temporarily round change in favor of customers “until a long-term solution is in place.”

Reports indicate that the Treasury placed its final order for penny blanks in May, and several Federal Reserve branches have already stopped distributing the coin to banks and financial institutions.