Schiff Calls for Investigation Into Insider Trading During Tariff Pause

Senator Adam Schiff is urging Congress to launch an investigation into potential insider trading or market manipulation by President Donald Trump after he abruptly halted a series of tariffs, resulting in a significant surge in stock prices. Schiff, a California Democrat, expressed his determination to uncover any unethical behavior related to family meme coins or other financial activities that could constitute insider trading.

The sudden tariff pause announced by Trump triggered a substantial uptick in the S&P 500, prompting the President to post on Truth Social with the message, “THIS IS A GREAT TIME TO BUY!!!” Despite Schiff’s call for an inquiry, the White House remained silent on the matter.

Schiff’s push for a formal investigation marks a significant development, as he is the first Senator to openly advocate for scrutinizing potential insider trading by the Trump Administration following the tariff announcement. Traditionally, such inquiries would fall within the scope of major congressional committees like the Senate Judiciary Committee or the Senate Finance Committee, both chaired by Republicans who have generally maintained a conciliatory stance towards the White House.

The market reaction following Trump’s tariff reversal has stirred suspicion among lawmakers, as evident in Senator Tim Kaine’s remark that public skepticism about the President’s motives prevailed even among regular citizens. Senator Tina Smith acknowledged the validity of scrutinizing Trump’s actions for potential market manipulation, indicating concerns among legislators regarding the situation.

Representative Steven Horsford was quick to raise questions about market manipulation during a tense hearing following the tariff news, underscoring the gravity of the situation. The subsequent market rally underscored the significance of Trump’s decision, as stocks soared over 7% within minutes of the announcement, culminating in a 9% increase by day’s end. This wave of optimism extended beyond stocks to bond yields and oil prices, which also saw positive shifts.

Treasury Secretary Scott Bessent defended the tariff pause as a strategic move to open avenues for diplomatic negotiations with allies, stressing the importance of negotiating in good faith. However, concerns lingered amid revelations of extensive discussions between Bessent and the President preceding the decision, with implications that China might be placed in a disadvantageous position as a result of the move.

Trump’s handling of the tariff issue, characterized by a mix of flexibility and unpredictability, further fueled uncertainty in financial markets. Schiff highlighted the need for consistency and clarity in economic policymaking, particularly in light of the significant implications for American businesses and individuals.

As a staunch critic of Trump, Schiff’s history of challenging the President includes his role in the impeachment proceedings in relation to the Russia investigation and the Ukraine pressure campaign. Despite facing backlash from Republican counterparts, Schiff has consistently advocated for accountability and transparency in government actions to safeguard the interests of the American public.