Trump family business empire boom raises unprecedented ethics concerns

While previous US presidents meticulously avoided even the appearance of profiting from their office, Donald Trump has adopted a markedly different approach, with his family's business empire undergoing rapid expansion and diversification since his return to the White House. Historically, figures like Harry Truman refused to lend their name to businesses, and George W. Bush divested individual stock holdings before taking office.

Led by Eric and Donald Jr., the Trump family's real estate business is experiencing its fastest overseas expansion in a century, with each deal potentially influencing international policy, from tariffs to military aid. The brothers have also ventured into cryptocurrencies, generating billions of dollars but raising questions about preferential treatment for large investors. Furthermore, they have invested in companies seeking contracts with the government their father leads, including a recent deal for stakes in an armed drone maker targeting the Pentagon and Gulf states.

Both the White House and the Trump Organization dismiss claims of ethical impropriety, with Donald Jr. stating at a recent crypto conference, "Frankly, it’s gotten old." However, government ethics experts and historians, such as Princeton University's Julian Zelizer, argue that the conflicts of interest accumulating in his second term are "unprecedented, blatant and dangerous to democracy." Mr Zelizer added, "I don’t think there’s any line right now between policy decisions and political calculations and the interest of the Trump family."

During his first term, the Trump Organization undertook no foreign deals. Yet, in just over a year into his second term, it has completed eight, ostensibly adhering to a self-imposed rule against direct business with foreign governments. However, in authoritarian states, governments often play a significant role.

Donald Trump holds a Playboy magazine and gold Trump sneakers at Sneaker Con Philadelphia AP Photo/Manuel Balce Ceneta

In Qatar, a Trump golf club and villa project is partly developed by a Qatari government-owned company. In Vietnam, the deputy prime minister signed off on a Trump resort deal, reportedly after farmers were displaced. A planned "Trump Plaza" in Saudi Arabia is being built by a developer close to the ruling family.

While it is difficult to ascertain if these deals influenced US policy, the countries involved did secure desired outcomes, such as advanced US technology for Qatar, tariff relief for Vietnam, and fighter jets for Saudi Arabia, while the Trump Organization received tens of millions in fees. The organisation maintains it has done no deals with governments, noting the Saudi company was private and describing its Qatari involvement as "collaborating" rather than a "partnership."

Further questions arose from a deal involving the Trump family's World Liberty Financial crypto business. Days before his inauguration, nearly half of it was sold for 500m to a UAE government−linked company. Separately, a UAE government fund invested 2bn in the offshore cryptocurrency exchange Binance using a stablecoin issued by World Liberty, allowing the Trump company to earn millions in interest. Shortly after, the Trump administration reversed a Biden-era restriction, granting the UAE access to advanced US chips.

Binance’s founder, Changpeng Zhao, later received a pardon from Mr Trump despite pleading guilty to failing to prevent criminals from using his platform for illicit activities. Zhao’s lawyer denied any connection between Binance’s business with the Trump family and the pardon, stating, "Any claim of a quid pro quo by Binance or CZ, or preferential financial treatment by Binance, is a clear misstatement of the public record." The White House attributed Zhao’s punishment to "The Biden Administration’s war on crypto," while World Liberty dismissed any conflict regarding the UAE deal and chips policy.

A view of the Trump International Hotel is seen on March 4, 2021, in WashingtonAP Photo/Julio Cortez, file

World Liberty has also generated a separate income stream for a new Trump limited liability corporation through sales of "governance tokens," raising $2bn last year. This translated into hundreds of millions for the Trumps via their own ownership stake and a side deal.

This translated into hundreds of millions for the Trumps via their own ownership stake and a side deal. Justin Sun, a cryptocurrency billionaire, spent $75m on these tokens, despite US law banning foreign citizens from making political donations. Another family crypto business, American Bitcoin, went public, giving Donald Jr. and Eric about $1bn in paper wealth, months after their father announced a new national bitcoin reserve, which sent prices soaring. While the value of these assets has since plunged, Mr Trump recently announced another dinner for top meme coin holders, temporarily boosting its value.

Columbia University historian Timothy Naftali observed, "Whatever constraints there were in the first term appear to have completely disappeared." He questioned, "Do you want future presidents to be open to the highest bidder?"

The White House asserts Mr Trump acts in an "ethically-sound manner," dismissing suggestions to the contrary as "ill-informed or malicious." Spokesperson Anna Kelly stated, "There are no conflicts of interest," adding that his assets are in a trust managed by his children, with whom he has "no involvement" in business deals.

FILE - Gold Trump sneakers sit on the podium after Republican presidential candidate former President Donald Trump spoke at Sneaker Con Philadelphia, an event popular among sneaker collectors, and announces a gold Trump sneaker, in Philadelphia, Saturday, Feb. 17, 2024AP Photo/Manuel Balce Ceneta

The Trump Organization affirmed it is "fully compliant with all applicable ethics and conflicts of interest laws" and called the implication of political enrichment "unfounded." Mr Trump himself told The New York Times in January that he found "nobody cared, and I’m allowed to," alluding to an exemption for presidents from federal statutes banning officials from holding financial interests in businesses impacted by public policy.

While it is unclear if public attitudes have shifted significantly, a Pew Research Center poll in January showed 42 per cent of voters confident in Mr Trump’s ethical conduct, down from 55 per cent a year prior. Forbes estimates Mr Trump’s net worth has soared 60 per cent to $6.3bn since his return to office, a striking turnaround given previous struggles, such as the unprofitable Trump International Hotel in D.C. and the closure of two hotel chains.

Donald Jr., Trump’s oldest son, opened a private club in the Georgetown section of Washington that is charging initiation fees as high as $500,000 for founding members. One of the few clubs with comparable fees, the Yellowstone Club in Montana, offers access to multiple resorts, 50 ski trails and more than a dozen restaurants across a members-only area the size of Manhattan. The club’s name is "Executive Branch."

Mr Trump himself is also hawking goods, including $59.99 "God Bless the USA" Bibles, $399 sneakers and electric guitars priced up to $11,500.

The momentum has not abated in his second year. In January, the Trump Organization announced its third Saudi Arabian deal in less than a year, a "collaboration" with a company tied to the country’s sovereign wealth fund.

Aaron Arnold, Eric Trump, Donald Trump Jr., Mike Ho, executive chairman of American Bitcoin and Matt Prusak, CEO of American Bitcoin, sit on stage at Bitcoin 2025AP Photo/John Locher, File)

The organisation maintains it does not "conduct business with any government entity." Meanwhile, the brothers’ new drone company seeks Pentagon contracts, and other government contractors in which they hold stakes are receiving millions in taxpayer money.

Eric Trump stated, "I am incredibly proud to invest in companies I believe in," while a spokesman for Donald Jr. dismissed the idea that he should "cease living his life and making a living" due to his father’s position. An investment firm the brothers advise, which initially stated it would target companies seeking federal grants and contracts, later removed that language from a regulatory filing after inquiries.

Mr Zelizer expressed concern about the message Mr Trump is sending, stating, "He has shown politically there is no price to be paid to making money. You know you can go there."