Democrats demand SEC investigation into potential market manipulation by Trump

A group of senior Senate Democrats have called for an investigation into potential insider trading, market manipulation, and securities law violations involving President Donald Trump and others concerning his recent changes to global tariffs that have triggered significant market instability. The senators, led by Massachusetts Senator Elizabeth Warren, highlighted the massive financial losses and market turmoil caused by Trump’s abrupt policy shifts, resulting in trillions of dollars in lost value since the tariffs were introduced last week.

The lawmakers also raised concerns about Trump’s public statements urging people to invest in the stock market, which preceded his unexpected announcement of a 90-day pause on most tariffs. This sudden reversal led to a major market rally, with Wall Street stocks soaring after Trump’s tariff delay came into effect.

Furthermore, similar requests for an investigation were made in a letter sent to the Office of Government Ethics and the White House chief of staff, citing suspicions of strategic planning behind Trump’s decision to retract tariffs on all countries except China. Treasury Secretary Scott Bessent characterized the move as part of Trump’s overall strategy, which contributed to a highly successful market day. However, White House spokesperson Kush Desai criticized the Democrats’ SEC investigation request as partisan gamesmanship rather than acknowledging Trump’s decisive action against China’s unfair trade practices.

The Democrats’ letter to the Securities and Exchange Commission on Friday emphasized the need to investigate potential advance knowledge of Trump’s tariff pause among government officials and affiliates, suggesting that insiders may have profited from knowledge of the impending announcement and its positive impact on the market.

The SEC declined to comment on the specifics of the investigation request, leaving the scope of the inquiry uncertain. Nonetheless, the senators remain steadfast in their commitment to ensuring transparency and accountability in financial markets, particularly when it comes to potential abuses of power or unlawful activities that could affect investors and the broader economy.

Overall, the call for an SEC investigation underscores the growing scrutiny and skepticism surrounding Trump’s trade policies and their implications for the economy. As lawmakers seek to uphold the integrity of financial markets and regulatory standards, the outcome of this inquiry could have far-reaching consequences for how political decisions impact market behavior and investor confidence in the future.