NEW YORK — On Friday, the Trump family business introduced a voluntary ethics agreement that permits it to engage in contracts with private foreign firms, a strategic shift aimed at facilitating potential influence from external entities towards the new administration.
This ethics document specifies that the Trump Organization is barred from entering contracts directly with foreign governments, yet is allowed to transact with private companies outside the U.S. This marks a notable departure from the ethics guidelines established during President Trump’s first term, which prohibited dealings with both foreign governments and companies.
The Trump Organization also announced its commitment to various protective measures inspired by its first term, which are designed to prevent personal financial interests from affecting government policy. Among these measures is the hiring of an external ethics consultant to review potential deals.
“The Trump Organization is committed to significantly exceeding its legal and ethical responsibilities throughout my father’s presidency,” stated Eric Trump, executive vice president of the organization.
Recently, the Trump Organization has made agreements for hotels and golf venues in regions such as Vietnam, Saudi Arabia, and the United Arab Emirates, prompting concerns from ethics experts regarding the potential influence of President Trump’s financial interests on his administration’s policies towards these countries.
The family business is reportedly interested in pursuing partnerships in Israel and has substantial investments in two publicly traded companies that could attract foreign investors. These include Trump Media & Technology Group, the parent company of the social media platform Truth Social, and a new cryptocurrency initiative named World Liberty Financial.
Government ethics attorney Kathleen Clark from Washington University School of Law expressed that “the scale of corruption will be significantly greater than what we witnessed during the first Trump administration.” She noted that individuals aiming to gain Trump’s approval now have a more straightforward method through financial contributions directed towards “investments” in Trump’s cryptocurrency and real estate projects.
To navigate potential conflicts with public policy, the Trump Organization announced the hiring of William A. Burck, a managing partner at Quinn Emanuel LLP, to oversee deal vetting.
Similar to the previous ethics agreement, the five-page document specifies that Trump will not engage in “day-to-day” decision-making within the Trump Organization, restricts his access to financial information about the business, and obligates the company to donate profits from foreign government expenditures at its properties to the U.S. Treasury.
Under U.S. law, federal officials are generally prohibited from holding financial interests in businesses that could influence their public policy decisions. While presidents are not bound by this regulation due to the post-Watergate ethics law, all presidents have voluntarily adhered to it, save for Trump.
As the first billionaire president, he would have needed to divest from numerous properties, including over a dozen golf courses globally, office and residential skyscrapers in major cities such as New York and Chicago, and several resorts, including his Florida estate, Mar-a-Lago.
During his first term, Trump aimed to avoid even the appearance of conflicts of interest but instead actively sought business for his properties. At one point, he proposed to host a G-7 summit at his Doral golf resort in Florida, a plan he later scrapped following public backlash.
His Trump International Hotel in Washington, D.C., transformed into a focal point for lobbyists and foreign diplomats, raising substantial ethical alarms throughout his presidency. Several groups accused him of breaching the Constitution’s “emoluments” provision concerning gifts and payments to the president, specifically citing the hotel’s operations. Following Trump’s departure from office, the Supreme Court deemed the emoluments issue moot and refrained from making a ruling.
With the vast nature of the Trump Organization’s businesses and its two newly established publicly traded entities, the emoluments clause may resurface as a legal challenge for Trump.
His financial share in Trump Media is valued at billions, and critics are concerned that those looking to gain favor with him, including foreign leaders, may buy shares in the company, further inflating its stock price and enhancing Trump’s wealth on paper.
The Trump family’s latest venture, World Liberty Financial, a platform for trading cryptocurrencies, also attracts scrutiny. Previously, Trump expressed his disapproval of cryptocurrency, highlighting its association with illicit activities. However, he has since reversed his stance, asserting ambitions to position the U.S. as the leading global hub for cryptocurrency.
The Securities and Exchange Commission (SEC) has cautioned about the volatility of investments in cryptocurrencies and the associated risks for investors, leading to crackdowns on certain firms. It remains uncertain whether such regulatory oversight will persist under the new administration, especially as Trump’s SEC nominee advocates for cryptocurrencies.
Eric Trump, heavily involved in the family business, has voiced his frustration over the scrutiny the organization faced during his father’s first presidential run and a desire for greater autonomy in managing business operations.
An October deal with a Vietnamese developer connected to the Communist Party to construct a $1.5 billion luxury golf resort has raised questions regarding its impact on U.S. policies, especially at a time when Trump has proposed increasing tariffs on several nations. Vietnam, with its significant trade surplus with the U.S., could be particularly vulnerable under Trump’s tariff threats.
The Trump Organization has properties in multiple countries, including India and Turkey, and it maintains golf courses in Scotland and Ireland while planning resorts in various global locations like Oman and Indonesia at different stages of development.
