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Trump Pauses Tariffs, Prompting Calls for Investigation into Potential Insider Trading
The White House has criticized Democratic lawmakers for labeling President Donald Trump’s latest trade decision as “partisan games” following his announcement on Wednesday to delay specific reciprocal tariffs for a duration of 90 days.
Kush Desai, a White House spokesperson, defended the President, stating, “It is the responsibility of the President of the United States to reassure the markets and Americans about their economic security amidst ongoing media fearmongering. While Democrats have condemned China’s trade practices for years, they are now more focused on political maneuvering than on commending President Trump’s firm stance against China.” This statement came in response to Democratic claims that Trump’s actions were market manipulations.
In a significant development, Senators Adam Schiff (D-Calif.) and Ruben Gallego (D-Ariz.) dispatched a letter to White House Chief of Staff Susie Wiles and Trade Representative Jamieson Greer, urging an investigation into possible insider trading implications arising from the timing of the President’s tariff pause.
The senators expressed serious concerns, stating, “This sequence of events raises grave legal and ethics concerns. The President, his family, and his advisors are uniquely positioned to access and benefit from non-public information that could influence their investment choices.”
Trump’s Reactions and Future Considerations
Prior to the tariff pause announcement, Trump shared an optimistic message on his social media platform, Truth Social, declaring, “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” He also stated a willingness to negotiate with nations rather than maintaining a firm stance against tariffs.
The tariff changes specifically apply to countries that have a history of implementing trade barriers against U.S. goods, with these nations now facing a lower tariff rate of 10% while the exact terms for a longer-term resolution continue to be negotiated. Conversely, China remains subject to a heightened tariff rate of 125% due to its retaliatory measures against U.S. products.
In a statement addressing the tariff pause, Schiff mentioned his intentions to investigate potential insider trading activities connected to the President’s financial dealings and those linked to his close relatives and allies, asserting that “family meme coins and all the rest of it are not beyond insider trading or enriching themselves.”
Administration’s Position on Tariff Adjustments
Treasury Secretary Scott Bessent elaborated on the rationale behind the President’s decision to pause the tariffs, indicating that Trump wished to play an active role in the negotiations, as multiple nations expressed interest in reaching agreements with the U.S.
Bessent noted, “We’ve had more than 75 countries contact us. After today, we expect even more outreach. Each agreement will require custom arrangements, which takes time. The President wants to be directly involved in these discussions, hence the 90-day pause.” He denied that recent fluctuations in the bond market were the driving force behind this decision.
Trump himself touched on the confusing market conditions, suggesting that some market players were overreacting to the economic climate, stating, “I thought that people were jumping a little bit out of line. They were getting yippy… unlike these champions, because we have a big job to do.” He further insisted that no previous President would have taken the bold steps he has undertaken in addressing trade issues.
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