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Senators Call for Investigation into Potential Insider Trading Linked to Trump’s Tariff Announcement
Sens. Adam Schiff (D-Calif.) and Ruben Gallego (D-Ariz.) are urging the Office of Government Ethics to conduct an investigation into what they describe as possible conflicts of interest involving officials in both the White House and executive branch. Their concerns are centered around financial trades that may have been influenced by insider information regarding President Trump’s recent announcement of a temporary halt on substantial tariffs.
The lawmakers are seeking clarity from the White House about potential breaches of federal ethics and insider trading regulations, particularly preceding Trump’s announcement on Wednesday, in which he revealed reductions in tariffs against most trading partners to 10 percent for a three-month period.
This news sparked a significant surge in the stock market, marking the third-largest single-day increase for the S&P 500 since World War II, and marking the most substantial gain for the Nasdaq since 2001.
Schiff and Gallego pointed out that Trump had made posts on Truth Social at 9:33 a.m. EDT on Wednesday, stating, “BE COOL! Everything is going to work out well.” Shortly after, in another post, he asserted, “THIS IS A GREAT TIME TO BUY!!!”
“Just hours after these messages, President Trump announced at 1:18 PM via Truth Social that he would be pausing most of the hefty tariffs he had recently introduced, which led to a significant rise in stock prices,” they stated.
“Such a series of events raises serious legal and ethical questions. The president, along with his family and advisors, may possess privileged access to confidential information that could impact their investment choices,” they added.
The senators noted that Tesla, led by Elon Musk—an advisor to Trump—saw its stock value soar by 18 percent immediately following the announcement.
In a letter sent on Thursday, Schiff and Gallego called on White House Chief of Staff Susie Wiles as well as Jamieson Greer, the acting director of the U.S. Office of Government Ethics, to investigate whether Trump or members of his family and administration may have engaged in insider trading or other unlawful financial activities based on early knowledge of the tariff changes.
The senators are also seeking insight into whether any employees within the White House or executive branch, including special government employees like Musk, potentially breached federal ethics laws, particularly concerning stock transactions made right before Trump’s April 9 announcement regarding tariff policy.
Schiff has previously reached out to the Office of Government Ethics and the White House for information concerning Musk’s adherence to federal regulations regarding conflicts of interest and ethical reporting, considering his outside business interests.
They are requesting a thorough review of communications that occurred between White House personnel and external entities such as financial institutions, brokers, dealers, investment advisors, or business associates that could have involved undisclosed information.
Additionally, Schiff and Gallego are asking the government ethics office to review and present any transaction reports filed by government officials closely surrounding the time of the President’s announcement regarding tariffs on Wednesday.
“We await your detailed responses on this crucial matter,” they concluded.
The Hill has reached out for comments from the White House.
Filip Timotija contributed.
Source
thehill.com