Did Trump's inner circle profit from tariff chaos? Democrats demand investigation

KARACHI: Hours after US President Donald Trump announced a 90-day pause on reciprocal and universal tariffs, Democratic lawmakers raised the alarm over potential insider trading and market manipulation tied to his tariff policy and market-related social media posts.

In a video message posted on X, Senator Chris Murphy warned that "an insider trading scandal is brewing".

He said that hours after Trump posted on social media (around 9:30am, ET) that it was a "good time to buy", the Trump administration made an unexpected announcement suspending tariffs on most countries, excluding China.

The market, which had been tumbling, reversed sharply, prompting questions about whether individuals close to the president profited from early knowledge of the move.

On Wednesday, Trump announced a 90-day pause on higher tariffs, saying he took the decision after more than 75 countries had reached out to negotiate and did not retaliate against the US.

"The bottom line is that the chaotic nature of this tariff policy," Murphy added: "gives ample opportunity for any individual who has early access to information to make boatloads of money." 

"This entire White House is one giant grift," he said.

Senator Elizabeth Warren echoed the concerns, calling for an independent investigation into whether Trump or members of his administration manipulated markets for personal or political gain.

In her post on X, she said: "Did Trump help insiders cash in on his tariff flip-flopping? It sure looks like corruption."

The video accompanying the post had her delivering a speech on the Senate floor.

She said, "He posted 'THIS IS A GREAT TIME TO BUY' in all caps — was that market manipulation? Was it corruption in plain sight?" Warren asked, warning of widespread uncertainty for businesses and consumers amid fluctuating trade policies.

Warren also urged Congress to take immediate action, highlighting her bipartisan resolution with Senator Ron Wyden aimed at curbing Trump's tariff authority, which she described as "worldwide and chaotic".

In his own post, Senator Adam Schiff underscored the need for congressional oversight, questioning whether friends, advisors, or associates of Trump had traded stocks based on nonpublic information.

"It is crucial to ask whether individuals personally profited from insider information while average Americans' savings and retirement accounts were being wiped out," Schiff said.

While the White House has not responded to the allegations, Schiff said lawmakers would press ahead with oversight efforts and demand transparency.