Trump faces scrutiny over timing of tariff pause as stocks surge

President Donald Trump made headlines when he decided to pause steep tariffs on America’s trading partners other than China, opting for a blanket 10 percent tariff instead. This 90-day pause came right before the duties were set to take effect, causing the stock market to react positively with major stock indices experiencing a significant boost.

Before the announcement of the tariff pause, Trump had encouraged investors to buy stocks, leading to accusations from Democrats about potential market manipulation. They suggested that Trump was using his announcements to manipulate the stock market by crashing stock prices initially before creating a short window of opportunity for those who bought shares to benefit.

In response to the allegations, Trump’s allies denied any wrongdoing, but critics are calling for a congressional investigation into the matter. The abrupt timing of the tariff pause and the subsequent surge in stock prices raised questions about whether some investors had prior knowledge of the decision.

Trump defended his decision to pause the tariffs, stating that he believed some countries were overreacting to the situation and needed to be incentivized to work towards a deal with the United States. The pause only applied to countries that had not retaliated against the US tariffs, with Trump aiming to reward those who were willing to negotiate.

Despite the tariff pause for most countries, China was not included in the reprieve. On what Trump dubbed as “Liberation Day,” China faced a 34 percent tariff on top of existing levies, leading to escalating tensions between the two economic powerhouses. The back-and-forth tit-for-tat actions between China and the US resulted in higher tariffs being imposed on both sides.

The tariff pause did not extend to China, and all other countries and territories, including those with which the US has a trade surplus or a free trade agreement, were still subject to a 10 percent tariff rate. Trump’s decision to pause the tariffs came as a surprise to many, given his previous stance on not rolling back or halting the tariffs.

Leading up to the announcement of the tariff pause, Trump and his administration had consistently stated that there would be no halt or reversal of the tariffs. This sudden change in course raised eyebrows among investors and lawmakers, particularly in light of the significant impact on the stock market.

The controversy surrounding Trump’s handling of the tariffs has sparked allegations of market manipulation from Democrats. They are calling for an investigation into whether Trump or his associates benefited from the fluctuations in the stock market by engaging in insider trading. California Senator Adam Schiff expressed concern over potential illegal profiting from the stock market swings and demanded accountability from the administration.