A group of House Democrats has raised concerns about possible insider trading linked to President Donald Trump’s recent tariff decision. On Wednesday, Trump hinted at a “great time to buy” stocks on his social media platform, Truth Social. Shortly after, he announced a reduction in tariffs, sparking a surge in stock market activity. Democratic lawmakers, led by Rep. Maxine Waters, have called for an investigation into whether Trump or his allies may have benefited from nonpublic information related to the tariff changes.
Democrats Demand Investigation into Market Timing
On Thursday, House Minority Leader Hakeem Jeffries, D-N.Y., expressed concerns about potential stock manipulation. Jeffries asked, “What advanced knowledge did members of the House Republican Conference have about Trump’s decision to ease tariffs?” The inquiry came after Trump’s public message on Truth Social that encouraged stock purchases before the tariff changes were officially announced.
Jeffries, along with several other Democratic lawmakers, has vowed to seek answers, particularly regarding any stock purchases made by lawmakers or their associates around the time of the tariff announcement. “We must ensure there’s transparency and accountability for any possible financial gains made from this decision,” Jeffries said.
Stock Market Reacts to Tariff Announcement
On Wednesday, Trump’s social media post, made just after the market opened, read: “THIS IS A GREAT TIME TO BUY!!! DJT.” The post was followed by his announcement at 1:30 p.m. ET that he was reducing tariffs on most countries, excluding China. The news led to a sharp rise in major stock indices: the Nasdaq jumped 12%, the S&P 500 rose by 9.5%, and the Dow Jones gained 8%.
While the White House dismissed any accusations of market manipulation, claiming that Trump was simply reassuring the public and markets, the timing of the social media post and market surge has raised eyebrows.
Lawmakers Push for Investigation by SEC
A group of 19 House Democrats, led by Rep. Maxine Waters, the ranking member of the House Financial Services Committee, formally requested an investigation into possible insider trading and market manipulation. The letter was sent to Securities and Exchange Commission (SEC) Chair Paul Atkins, as well as to two government watchdogs: Deborah Jeffrey, the SEC’s inspector general, and Gene Dodaro, head of the Government Accountability Office (GAO).
The letter questioned whether any members of Congress had access to confidential information regarding the tariff changes before they were publicly announced. It also raised concerns about whether any individuals used this knowledge to make stock purchases.
Jessica Baxter, a GAO spokesperson, confirmed the letter’s receipt and stated that the office was reviewing the request. Representatives for the SEC have not yet commented on the matter.
Calls for Independent Investigation
Sen. Elizabeth Warren, D-Mass., suggested that there was enough suspicion to warrant an investigation, although she emphasized the need for an independent review. “We need a full, independent investigation into who was trading, who profited, and who knew what and when,” Warren said, calling for transparency in the wake of the allegations.
Senators Adam Schiff, D-Calif., and Ruben Gallego, D-Ariz., have also joined the calls for an investigation, writing to U.S. Trade Representative Jamieson Greer and White House Chief of Staff Susie Wiles for more information.
Republican Defenses and Pushback
Republican leaders have rejected the accusations of insider trading. Sen. John Cornyn, R-Texas, dismissed the claims, calling the notion of market manipulation “ridiculous.” House Speaker Mike Johnson, R-La., also responded humorously, suggesting that “today would be a great day to buy stocks,” poking fun at the Democrats’ allegations.
Public Scrutiny of Lawmakers’ Stock Trades
Rep. Alexandria Ocasio-Cortez, D-N.Y., who co-sponsored legislation this year to ban members of Congress from owning or trading stocks, weighed in on the matter. She stated that any lawmaker who profited significantly from stock trades just before the tariff announcement should be held accountable.
Ocasio-Cortez also noted that members of Congress have until May 15 to submit their financial disclosure reports, urging lawmakers to be transparent about any trades made in the days leading up to the tariff decision.
No Evidence of Illegal Activity
As of now, there is no concrete evidence that President Trump, his administration, or any of his allies engaged in insider trading or manipulated the market based on nonpublic information. However, the situation has prompted a broader discussion about the intersection of politics and financial markets, particularly regarding the actions of public officials and their financial dealings.
