Shanghai
The scenario underscores how difficult it is for the president’s daughter, who has tried to distance herself from the brand that bears her name, to separate business from politics in her new position at the White House.
As she crafts a political career from her West Wing office, her brand is flourishing, despite boycotts and several stores limiting her merchandise. U.S. imports, almost all of them from China, shot up an estimated 166 percent last year, while sales hit record levels in 2017. The brand, which Ivanka Trump still owns, says distribution is growing.
It has launched new activewear and affordable jewelry lines and is working to expand its global intellectual property footprint. In addition to winning the approvals from China, Ivanka Trump Marks LLC applied for at least nine new trademarks in the Philippines, Puerto Rico, Canada and the U.S. after the election.
The commercial currents of the Trump White House are unprecedented in modern American politics, ethics lawyers say. They have created an unfamiliar landscape riven with ethical pitfalls, and forced consumers and retailers to wrestle with the unlikely passions now inspired by Ivanka Trump’s mid-market collection of ruffled blouses, shifts and wedges.
Using the prestige of government service to build a brand is not illegal. But criminal conflict-of-interest law prohibits federal officials, like Ivanka Trump and her husband, from participating in government matters that could impact their own financial interest or that of their spouses.
“Put the business on hold and stop trying to get trademarks while you’re in government,” advises Richard Painter, who served as chief White House ethics lawyer under George W. Bush.
To address ethical concerns, Ivanka Trump has shifted the brand’s assets to a family-run trust valued at more than $50 million and pledged to recuse herself from issues that present conflicts. She is also no longer running her design business and has given day-to-day responsibility to Abigail Klem, president of the brand. Meanwhile, her husband has taken steps to distance himself from his sprawling New York real estate business, divesting some of his business interests including his stake in a major Fifth Avenue skyscraper.
“Ivanka will not weigh in on business strategy, marketing issues or the commercial terms of agreements,” her attorney, Jamie Gorelick, said in a statement. “She has retained authority to direct the trustees to terminate agreements that she determines create a conflict of interest or the appearance of one.”
In a recent interview with CBS News, Trump argued that her business would be doing even better if she hadn’t moved to Washington and placed restrictions on her team to ensure that “any growth is done with extreme caution.”
China, however, remains a nagging concern.
“Ivanka has so many China ties and conflicts, yet she and Jared appear deeply involved in China contacts and policy. I would never have allowed it,” said Norman Eisen, who served as chief White House ethics lawyer under Barack Obama. “For their own sake, and the country’s, Ivanka and Jared should consider stepping away from China matters.”
Instead, the first daughter and her husband have emerged as prominent interlocutors with China, where they have both had significant business ties.
Publicly, Ivanka Trump has taken a gracious, charming approach toward Beijing. During the Mar-a-Lago meetings, her daughter, 5-year-old Arabella, stood in a gilded room and sang a traditional Chinese song, in Mandarin, for China’s president, Xi Jinping.
The week of the summit, 3.4 tons of Ivanka Trump handbags, wallets and blouses arrived in the U.S. from Hong Kong and Shanghai. U.S. imports of her merchandise grew an estimated 40 percent in the first quarter of this year, according to Panjiva Inc., which maintains and analyzes global shipping records.