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Senators Urge SEC Investigation into Possible Insider Trading Related to Trump’s Tariff Pause
Senate Democratic Leader Chuck Schumer from New York and Senator Elizabeth Warren of Massachusetts, who serves as the ranking member of the Banking Committee, have formally requested that the Securities and Exchange Commission (SEC) investigate potential insider trading linked to recent tariff policy announcements made by former President Donald Trump. This inquiry stems from events that unfolded following Trump’s decision to temporarily halt steep reciprocal tariffs earlier this week.
In a letter directed to SEC Commissioner Paul Atkins, the senators have called for a probe into whether any violations of federal securities laws occurred involving Trump and his associates. The letter states, “We ask the SEC to determine whether President Trump, any members of his cabinet, or other donors, insiders, and administration officials engaged in insider trading, market manipulation or other securities laws violations on April 9, 2025, when President Trump announced that it was a ‘GREAT TIME TO BUY’ into the stock market.”
Prominent representatives Adam Schiff (D-Calif.), Ron Wyden (D-Ore.), Mark Kelly (D-Ariz.), and Ruben Gallego (D-Ariz.) have also appended their signatures to this letter, highlighting a collective concern among Democratic lawmakers.
The senators pointed out that Trump’s message on Truth Social, encouraging investments in the stock market, was posted just hours before he announced a 90-day reprieve on tariffs, which subsequently triggered a notable rally in the stock market after days of volatility. They quoted Trump’s post at 9:37 AM on that Wednesday, stating, “THIS IS A GREAT TIME TO BUY!!!”
“It is unclear which officials and affiliates for President Trump had advance knowledge of his plans to delay tariffs — but insiders may have known that he was going to announce a tariff pause and that the market would improve,” the senators noted.
Coincidentally, Trump had a lunch meeting the same day at the White House with Charles Schwab, a prominent investor and financier. A video surfaced on social media showing Trump and Schwab in the Oval Office where Trump remarked, “He made $2.5 billion today. … That’s not bad,” further drawing attention to the timing of the meeting.
Warren remarked on her social media account, sharing the video and encapsulating her perspective: “Donald Trump in a nutshell: doing everything he can to make the ultra-rich even richer. We need to find out if Trump’s tariff chaos has led to any wrongdoing.”
The Democratic senators are seeking clarity from the SEC on the actions it has taken or intends to take regarding the investigation of potential market manipulation and insider trading related to Trump and his affiliates. They have also inquired whether the SEC has received any communications from Trump, White House officials, or associates concerning the investigation.
The White House has yet to release a statement in response to these developments.
This letter follows a separate correspondence from Schiff and Gallego to the Office of Government Ethics and the White House Chief of Staff, calling for an inquiry into the potential conflicts of interest among executive branch officials who may have engaged in financial transactions based on insider knowledge about the 90-day tariff freeze.
Schiff highlighted his skepticism regarding the likelihood of a thorough investigation from the White House, stating, “The head of the Office of Government Ethics was fired. I don’t know who is still left there to conduct an objective investigation but they certainly should. If they don’t, we’re going to do our best to conduct it ourselves.”
Source
thehill.com