[Asia Economy Reporter Yujin Cho] Former U.S. President Donald Trump, who left the White House, is facing a sharp decline in sales of his business operations. As companies that had cooperative relationships begin to turn their backs one after another, financial losses are growing uncontrollably, and with the added burden of personal debt, dark clouds have gathered over his future after leaving office.
According to the U.S. Office of Government Ethics (OGE) on the 22nd (local time), hotels and golf resorts under the Trump Group, a family business of former President Trump, saw sales drop by about 40% year-on-year during the period just before his retirement last year and this year, reported the Wall Street Journal (WSJ) and others. Trump International Hotel in Washington DC saw its sales decrease from $40 million (about 44.1 billion KRW) to $15 million during this period, and the Miami Doral Golf Resort's revenue also fell from $77 million to $44 million, according to reports. The decline in sales was even greater for highly profitable real estate development-related businesses.
The WSJ forecasted that the Trump businesses, which had been declining due to the impact of the novel coronavirus disease (COVID-19), have worsened further following the U.S. Capitol riot. This is because former President Trump’s commission of crimes inciting rebellion has seriously damaged the 'Trump' brand image. The Professional Golfers' Association (PGA) withdrew its plan to hold the 2022 PGA Championship at a Trump-owned golf club, and New York City terminated contracts for operating the ice rink, carousel, and golf course in Central Park.
It has not been confirmed what role former President Trump will play in business operations after leaving office. Trump left the White House without attending Joe Biden’s inauguration, holding a self-farewell ceremony at a military base and leaving the words "I will be back." The WSJ reported that he is actively seeking ways to exert political influence for a 2024 presidential election rematch. According to close aides, former President Trump is currently discussing the establishment of a new party called the 'Patriot Party.'
A greater threat than the decline in sales is that tenants of Trump-owned high-rise buildings in New York and San Francisco are showing signs of ending their lease agreements. The New York Girl Scouts are considering terminating their lease contract at Trump Tower located at 40 Wall Street.
The WSJ reported that the decrease in rental income could deal a greater financial blow to former President Trump. Deutsche Bank, his largest creditor bank, has also decided to sever its business relationship with him. According to Bloomberg, Trump’s assets are valued at $2.5 billion (about 2.75 trillion KRW), down $500 million from when he took office. The buildings carry debts exceeding $1 billion, with maturities due within three years.
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