US lawmaker calls for probe into Trump following tariff U-turn
3 Min Read
Trump's abrupt tariff shift sent the market into a frenzy, prompting suspicions of a "market manipulation scheme."
-
Sen. Adam Schiff, D-Calif. speaks during the Senate Environment and Public Works Committee hearing on Capitol Hill on Wednesday, March 5, 2025, in Washington. (AP)
Lawmakers in the United States are calling for an investigation into whether President Donald Trump engaged in insider trading or market manipulation following his abrupt shift on global tariffs, a move that triggered a historic stock market rebound.
The controversy erupted after Trump posted “IT’S TIME TO BUY” just minutes after Wall Street opened on Wednesday.
Hours later, he announced a 90-day suspension of additional tariffs on dozens of countries, except for China, which triggered a market rally.
Markets across the globe surged following Trump's announcement, with Wall Street rebounding sharply after days of volatility and Asian markets following suit. The Dow Jones jumped 7.87%, its largest gain since 2008, while the Nasdaq soared 12.16%, the most since 2001.
Trump, speaking to reporters, dismissed claims that he had backtracked on his tough trade stance. “You have to be flexible,” he said. “People were jumping a little bit out of line, they were getting yippy, a little bit afraid.”
The president added that he was closely monitoring US bond markets before making his decision. “I saw last night where people were getting a little queasy,” he said, referring to rising bond yields amid a broader stock sell-off, a signal of investor anxiety during times of uncertainty.
'The world's biggest market manipulation scheme'
California Democratic Senator Adam Schiff took to X to question whether individuals close to the president had advance knowledge of the policy reversal and acted on it financially.
“Who in the administration knew about Trump’s latest tariff flip flop ahead of time? Did anyone buy or sell stocks, and profit at the public’s expense?” Schiff wrote. “I’m writing to the White House — the public has a right to know.”
Is Donald Trump's inner circle illegally profiting off of these huge swings in the stock market by insider trading?
— Adam Schiff (@SenAdamSchiff) April 9, 2025
Congress must find out. pic.twitter.com/ZZGX99PtFE
Democratic members of the House Financial Services Committee echoed his concerns, writing on X, “The President of the United States is literally engaging in the world’s biggest market manipulation scheme.”
Hours before his 90-day tariff pause announcement. The President of the United States is literally engaging in the world's biggest market manipulation scheme. pic.twitter.com/lHyU4xp4y7
— House Committee on Financial Services - Democrats (@USHouseFSC) April 9, 2025
Adding to the controversy, Trump signed off his social media post with "DJT", both his initials and the stock ticker symbol for his media company, Trump Media & Technology Group, whose shares rose by 21.67% on the day.
Former White House ethics lawyer Richard Painter, who served under President George W. Bush, also weighed in on the unfolding scandal, telling NBC, “Presidents are not investment advisors. This scenario could expose the president to charges of market manipulation.”
Later on Wednesday, a video posted by White House communications advisor Margo Martin showed Trump in the Oval Office with Charles Schwab, the billionaire co-founder of the investment firm that bears his name. “He’s not just a company, he’s actually an individual! And he made 2.5 billion (dollars) today,” Trump added.
“This is Charles Schwab…it’s not just a company, it’s actually an individual!” President @realDonaldTrump 🤣🤣 pic.twitter.com/uOHJF8VD4v
— Margo Martin (@MargoMartin47) April 9, 2025
Despite the backlash, the White House defended Trump’s actions. “It is the responsibility of the president of the United States to reassure markets and Americans about their economic security in the face of constant media scaremongering,” spokesperson Kush Desai told The Washington Post.
Read more: Major global bank says potential dollar crisis looming
