SHANGHAI (AP) — On April 6, Ivanka Trump’s company won provisional approval from the Chinese government for three new trademarks, giving it monopoly rights to sell Ivanka brand jewelry, bags and spa services in the world’s second-largest economy. That night, the first daughter and her husband, Jared Kushner, sat next to the president of China and his wife for a steak and Dover sole dinner at Mar-a-Lago.
The scenario underscores how difficult it is for Trump, 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 the first daughter 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 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 Trump and her husband, from participating in government matters that could impact their own financial interest or that of their spouse. Some argue that the more her business broadens its scope, the more it threatens to encroach on the ability of two trusted advisers to deliver credible counsel to the president on core issues like trade, intellectual property, and the value of the Chinese currency.
“Put the business on hold and stop trying to get trademarks while you’re in government,” advised Richard Painter, who served as chief White House ethics lawyer under George W. Bush.
To address ethical concerns, 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.
“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. Last year, Kushner pursued hundreds of millions of dollars in real estate investments from Anbang Insurance Group, a financial conglomerate with close ties to the Chinese state. After media reports about the deal, talks were called off.
Ivanka Trump, right, walks with her husband, Jared Kushner, senior adviser to the president, to a news conference with President Donald Trump and Japanese Prime Minister Shinzo Abe, at the White House in Washington. Ivanka Trump’s company continues to grow. Ethics lawyers fear the more her business expands, the more it may encroach on her ability, and husband, Jared Kushner, to credibly advise the president on core issues.