Senators Push for Insider Trading Investigation After Trump’s Tariff Pause

WASHINGTON, D.C. — Senator Adam Schiff, a California Democrat, is urging Congress to investigate potential insider trading by President Donald Trump and his advisors following the abrupt pause of tariffs that has led to significant stock market fluctuations. On Wednesday, after Trump announced a temporary halt to tariffs, the S&P 500 saw an increase of over 9%.

“I’m going to do my best to find out,” Schiff stated in an interview with TIME. “Family meme coins and all the rest of it are not beyond insider trading or enriching themselves. I hope to find out soon.” This assertion marked the first call by a senator for a formal inquiry into the President’s actions amid rising stock prices.

Investors reacted positively to Trump’s announcement made early Wednesday morning, particularly after he indicated on Truth Social, “THIS IS A GREAT TIME TO BUY!!!” The announcement came shortly after the market opened, further fueling speculation about possible insider knowledge regarding trading during a time of significant financial volatility.

Schiff’s demand comes as he and Arizona Senator Ruben Gallego sent a letter to White House Chief of Staff Susie Wiles and Trade Representative Jamieson Greer, urging an investigation into whether the President or his close associates engaged in insider trading linked to non-public information about the tariffs.

“This sequence of events raises grave legal and ethics concerns,” the senators wrote. “The President, his family, and his advisors are uniquely positioned to be privy to and take advantage of non-public information to inform their investment decisions.” The letter added that stock prices for companies like Tesla, which Elon Musk publicly opposed regarding tariffs, saw significant gains following Trump’s announcement.

In a separate inquiry, Schiff pointed out that an investigation by the Office of Government Ethics is necessary to review transaction reports filed by officials involved in tariff decisions, especially given the concerns raised by investor reactions to the announced changes.

As discussions regarding the investigation unfolded, Democratic lawmakers expressed increasing skepticism. Virginia Senator Tim Kaine stated, “When my own barber asks me whether Donald Trump is selling short or using this to profit himself, it shows that a lot of people are pretty suspicious about what’s going on.”

Meanwhile, the White House responded to the claims, asserting that the President’s actions were intended to foster negotiations with multiple countries about tariffs. Treasury Secretary Scott Bessent maintained that the tariff pause was a strategic move designed to allow for bespoke negotiations with trading partners.

The market’s response to the announcement was noteworthy, with the Dow Jones Industrial Average climbing over 7% shortly after the news broke. Bond yields fell, indicating a decrease in market anxiety, while oil prices rebounded following the announcement.

Republican senators largely dismissed the allegations of insider trading as unfounded. Senator John Cornyn of Texas labeled the claims “ridiculous,” suggesting that the Democrats were simply seizing on the opportunity to attack the President.

As the conversation about potential insider trading continues, lawmakers are questioning the precise timing of Trump’s tariff reversal and the extensive impact it had on stock prices. Senators await responses from the White House regarding Schiff’s and Gallego’s formal requests, as discussions intensify over the implications of the President’s financial policies on market stability.