Top Democrats in Congress are calling for investigations into possible insider trading after former President Donald Trump made a sudden move to delay global tariffs. The decision caused a sharp rise in the stock market. Lawmakers are raising concerns that Trump or people close to him may have profited from the market shift. On Friday, Senate Majority Leader Chuck Schumer and other Democratic senators asked the Securities and Exchange Commission (SEC) to investigate. So far, there is no public proof of wrongdoing. But Democrats say the timing of Trump’s online post and the market jump needs to be examined closely.
Lawmakers Question Trump’s Market Influence
On Wednesday morning, Trump posted on Truth Social, telling people it was a “GREAT TIME TO BUY” stocks. Later that same day, he announced a 90-day pause on global tariffs. This caused the market to bounce back quickly after days of decline.
Democrats say the timing raises red flags. Several are now asking regulators to look into possible insider trading or market manipulation.
“It is unconscionable that… insiders may have actively profited from the market volatility,” Democratic senators said in a joint letter to SEC Chair Paul Atkins.
The letter was signed by Schumer, Elizabeth Warren (D-Mass.), Mark Kelly (D-Ariz.), Ruben Gallego (D-Ariz.), Adam Schiff (D-Calif.), and Ron Wyden (D-Ore.).
More Pressure from Congress
Democrats are not stopping at the SEC. On Friday, Schumer, Schiff, Warren, and Wyden also wrote to state attorneys general. They asked state-level officials to look into whether any state laws were broken.
“No one — not even a president — is above the law,” the letter said.
House Minority Leader Hakeem Jeffries also weighed in. He said the public deserves to know if House Republicans had early knowledge of Trump’s decision to pause the tariffs.
“We need to get to the bottom of the possible stock manipulation unfolding before the American people,” Jeffries told reporters.
No Evidence Yet, but Democrats Push Forward
As of now, there is no direct evidence of insider trading linked to Trump’s statements or the tariff delay. Still, the Democrats say the unusual market movement deserves a closer look.
Trump’s office pushed back hard. White House spokesperson Kush Desai accused Democrats of “playing partisan games.” He said Trump was simply trying to calm markets and protect American jobs.
“President Trump’s decisive action yesterday was aimed at cornering China,” Desai said in a statement to media.
Ethics and Stock Trading in Congress
This issue also brings back long-running concerns about lawmakers and stock trading. Members of Congress must report their stock trades. Any trades related to the tariff news must be disclosed by May 15, according to federal rules.
Rep. Alexandria Ocasio-Cortez (D-N.Y.) said lawmakers are now looking at ways to move forward with a stock trading ban for Congress. She mentioned using a discharge petition—a rare tactic to force a vote even without majority party support. But past efforts to ban congressional trading have failed.
What’s Next?
Democrats may not have the power to launch formal investigations on their own, since they are the minority in both chambers. But they are using public pressure and letters to push for action from the SEC and state attorneys general.
The coming weeks may bring more scrutiny. If any suspicious trades are disclosed in the next report, it could intensify calls for a full investigation.
