Senators call for investigation into insider trading regarding Trump’s tariff reversal

Once again, a group of US senators has urged the nation’s financial overseers to probe into whether President Donald Trump or his close advisors breached any laws regarding trading of securities before his sudden decision to reverse global tariffs, a move that led to significant stock market upturn.

The group, consisting of six Democratic senators, spearheaded by the well-known Elizabeth Warren from Massachusetts, penned a letter to the Securities and Exchange Commission (SEC) on Friday, pushing for an investigation into potential insider trading and possible manipulation of the market.

Their concerns were sparked following a peculiar social media statement from Trump on his Truth Social platform early Wednesday, saying, “THIS IS A GREAT TIME TO BUY!!!” Shortly thereafter, he announced a 90-day suspension of tariffs affecting multiple countries. This unexpected announcement caused a surge in the stock market, with the S&P 500 experiencing its most significant one-day increase since the period of recovery after the 2008 financial crisis.

The senators have called for the oversight body to look into whether those close to the president, possibly including his family members, had early knowledge of the tariff suspension and exploited it for advantageous trades before the news became public.

Trump concluded his post on Truth Social with “DJT,” which corresponds to the stock market trading symbol for his media entity, Trump Media & Technology Group. Following the post, the company’s shares rose by over 21 percent.

The lawmakers have urged the SEC to determine if any contributors, government officers, or associates participated in insider trading, market tampering, or other breaches of US financial laws.

Despite past clashes between SEC Chairman Paul Atkins and Senator Warren over alleged conflicts of interest, there is no legal requirement for the chairman to initiate an investigation. The worries have heightened about various avenues through which Trump and his relatives could gain financial profit while in office, although there is no concrete evidence of any corruption at this time, causing distress among critics.

In a separate incident shortly before Trump took office, he introduced a “memecoin,” a type of cryptocurrency with no inherent value, which raised questions regarding potential anonymous or foreign donations that could infiltrate his financial dealings.

In defense, The White House claimed that the Truth Social message was intended solely to reassure the public and underscored the president’s obligation to assuage financial market concerns and enhance economic confidence.