Democrats Raise Concerns Over Potential Insider Trading Tied to Trump’s Tariff Policies

KARACHI: Following US President Donald Trump’s announcement of a 90-day pause on reciprocal and universal tariffs, Democratic lawmakers have voiced concerns about potential insider trading and market manipulation related to his tariff policy and market-related social media activity.

Senator Chris Murphy issued a warning in a video message on X, stating that “an insider trading scandal is brewing”.

Murphy explained that shortly after Trump posted on social media (around 9:30 am, ET) that it was a “good time to buy,” the Trump administration unexpectedly announced a suspension of tariffs on most countries, with the exception of China.

The market, which had been declining, experienced a sharp reversal, leading to questions about whether individuals close to the president benefited from advance knowledge of the decision.

On Wednesday, Trump stated that the 90-day pause on higher tariffs was implemented after more than 75 countries reached out to negotiate and did not retaliate against the US.

Murphy added, “The bottom line is that the chaotic nature of this tariff policy gives ample opportunity for any individual who has early access to information to make boatloads of money.”

“This entire White House is one giant grift,” he further commented.

Senator Elizabeth Warren echoed these concerns, calling for an independent investigation into whether Trump or members of his administration manipulated markets for personal or political gain.

In her post on X, she questioned, “Did Trump help insiders cash in on his tariff flip-flopping? It sure looks like corruption.”

The video accompanying her post featured a speech delivered on the Senate floor.

Warren stated, “He posted ‘THIS IS A GREAT TIME TO BUY’ in all caps — was that market manipulation? Was it corruption in plain sight?” She also cautioned about the widespread uncertainty facing businesses and consumers due to fluctuating trade policies.

Warren also urged Congress to take immediate action, emphasizing her bipartisan resolution with Senator Ron Wyden aimed at curbing what she described as Trump’s “worldwide and chaotic” tariff authority.

Senator Adam Schiff also posted, underscoring the need for congressional oversight and questioning whether Trump’s friends, advisors, or associates had traded stocks based on nonpublic information.

Schiff stated, “It is crucial to ask whether individuals personally profited from insider information while average Americans’ savings and retirement accounts were being wiped out.”

While the White House has not yet responded to the allegations, Schiff indicated that lawmakers would proceed with oversight efforts and demand transparency.