NEW YORK (AP) — If Trump watches or sneakers or bibles aren't your thing, the family business just added another product to show your support for the U.S. president: mobile phones.
The Trump company announced Monday a new business, Trump Mobile, that will offer cell service in a licensing deal and sell gold phones by the summer. It's the latest in a string of new ventures struck despite mounting ethical concerns that the U.S. president is profiting off his position and could distort public policy for personal gain.
Eric Trump, the president’s son running The Trump Organization in his absence, suggested the pitch is patriotism, emphasizing that the phones will be built in the U.S. and the phone service will maintain a call center in the country as well.
The announcement follows several real estate deals for towers and resorts in the Middle East, including a golf development in Qatar announced in April. A $1.5 billion partnership to build golf courses, hotels and real estate projects in Vietnam was approved last month, though the deal was in the works before Trump was elected.
Trump has already used the main regulatory agency that will oversee Trump Mobile in personal disputes.
The Federal Communications Commission has launched investigations of media outlets Trump dislikes and, in some cases, is personally suing. And the president himself last month criticized cell phone maker Apple, now a big business rival, because it planned to make most of its U.S. iPhones in India, threatening to slap a 25% tariff on the devices.
Eric Trump said that consumers deserve a phone that aligns with their values.
“Hard-working Americans deserve a wireless service that’s affordable, reflects their values, and delivers reliable quality they can count on,” he said in a statement.
The Trump phone deal comes as a mandatory financial disclosure report just filed with the government shows the president has moved fast in the last year to profit off his celebrity, taking in $3 million in revenue from selling “Save America” coffee table books, $2.8 million from Trump watches and $2.5 million from Trump branded sneakers and fragrances.
The Trump Organization on Monday said the new, gold-colored phone available for $499 in August, called the T1 Phone, won’t be designed or made by Trump Mobile, but by another company.
The Trump Organization did not respond to repeated requests for more details on that and comment.
IDC analyst Francisco Jeronimo said the monthly fee of just under $50 is pricey, the appeal beyond the most ardent MAGA loyalists doubtful and the business difficult given that cell phones break down.
“It's not like selling hats and t-shirts. I'm not sure they have that all sorted of," said Jeronimo, adding “I’m not sure they are bringing great value to the American people."
Donald Trump ventured into the telecommunication industry once before, giving speeches and promoting a multi-level marketing company called ACN that was eventually sued for fraud and misleading customers.
In the first term, Trump was blasted by conservative and liberal government ethics experts alike for opening his Washington hotel to lobbyists and diplomats and violating his company’s pledge to avoid even the appearance of a conflict between his private profit and the public interest.
The company is feeling more emboldened now in the second term.
The mobile service is partnering with existing cellular carriers with access to a 5G network, raising questions of how they will be treated by federal regulators now that they have partnered with his company. The Trump Organization said those companies are America’s three biggest mobile network providers, an apparent reference to Verizon, AT&T and T-Mobile, the latter with a trademarked name that is very similar to Trump’s T1 Mobile.
The name given to the monthly service offer, The 47 Plan, and the monthly $47.45 monthly fee make reference to Trump’s two terms, the 45th and the 47th. The service will include unlimited calls, texts and data and free roadside assistance and telehealth services.
A mock-up of the planned phone on the company’s website shows Trump’s slogan “Make America Great” on the front and an etched American flag on the back.
By sticking to licensing, the Trump family is limiting its risk. Still, the new service faces big challenges if it hopes to sell beyond the president’s loyal MAGA fans.
The Trump company tried to tap into support among the middle class in the first term with two mid-priced hotel chains. Called American Idea and Scion, and unveiled like the phone service Monday under a giant U.S. flag in the Trump Tower atrium, they flopped.
Despite taking in millions of dollars each year in various licensing deals and a string of new ventures, the Trump brand has taken a series of hits to its brand over the years.
During his first term, the Trump name was stripped off residential buildings and hotels in Toronto, Panama and Manhattan.
The Trump International Hotel in Washington, since sold, lost money even though the family opened its doors to businesses and governments trying to shape U.S. policy.
The average condo in 11 Trump-branded residential towers around the country underperformed the broader market during and immediately after Trump’s first term. More recently, the value of Trump condos in New York City fell in the past two years as similar properties rise in value, according to brokerage CityRealty.
The Trump Organization has had more success with some ventures launched in the first few months of his second term.
Trump Media & Technology Group, a Florida company that operates the Truth Social media platform, filed plans with security regulators Monday to launch an exchange-traded fund tied to the prices of two popular cryptocurrencies.
The ETF is part of the Trump family’s rapidly growing crypto empire, which includes a new stablecoin and launching and promoting memecoins.
The president’s most recent financial disclosure report reveals he made more than $57 million last year from World Liberty Financial, a crypto company he and his sons helped launch in September.
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AP Business Writer Alan Suderman contributed to this story.
Bernard Condon, The Associated Press
