Schumer and other Democrats call for investigation into potential ‘insider trading’ related to Trump’s tariff delay

Democratic senators, led by Charles Schumer of New York, have called for an investigation into potential insider trading involving Donald Trump’s administration following the announcement that tariffs would be put on hold. The senators are concerned that individuals within the administration may have profited from advanced knowledge of this decision, which prompted a significant stock market rally.

In response to these allegations, a White House spokesperson dismissed the Democrats’ inquiries as “partisan games.” However, Senators Adam Schiff of California and Ruben Gallego of Arizona sent a letter to the U.S. Office of Government Ethics urging an urgent investigation. They specifically requested an inquiry into whether the President, his family, or other administration members engaged in insider trading or illicit financial transactions based on non-public tariff policy information.

Following this initial letter, four additional Democratic senators, including Elizabeth Warren of Massachusetts and Mark Kelly of Arizona, joined the call for an investigation. The group expanded their inquiry to include a request to the Securities and Exchange Commission (SEC) to look into potential violations of securities laws related to the tariff announcement and stock market activity that followed.

Key details that prompted these inquiries include a social media post by Trump on Truth Social advising followers to buy stocks shortly before announcing the tariff pause. By connecting the timing of these events, the senators are seeking clarification on whether administration insiders may have manipulated the market for personal gain.

The senators’ letters emphasized the need for the SEC to determine if actions taken by the President, his associates, or donors constituted market manipulation, insider trading, or other violations that could disadvantage the American public. They highlighted the drastic market reactions to the tariff announcement, with the Dow Jones Industrial Average surging nearly 3,000 points and the S&P 500 rising by 9.5%.

Despite the senators’ calls for investigation, the White House defended the President’s actions, attributing them to efforts to secure economic stability amidst media speculation. White House spokesperson Kush Desai criticized the Democrats for their focus on alleged wrongdoing rather than celebrating the administration’s actions against China’s purported unfair practices.

In light of these developments, Democratic Representative Alexandria Ocasio Cortez also weighed in, urging members of Congress who engaged in recent stock purchases to disclose this information promptly. She highlighted the importance of transparency to prevent any appearance of insider trading among lawmakers.

As the investigation unfolds, there is growing scrutiny over the potential exploitation of non-public information to benefit from market fluctuations. The outcome of the inquiry will shed light on whether any individuals within Trump’s administration engaged in activities that could compromise market integrity and investor confidence.