Two Democratic senators, Adam Schiff and Ruben Gallego, are raising concerns over potential insider trading involving President Donald Trump’s tariff rollbacks and social media activity. In a letter addressed to Trump’s chief of staff and Trade Representative, they are calling for an investigation into possible conflicts of interest surrounding the events that unfolded on Wednesday.
Before announcing a reduction in tariffs to 10% for all countries except China, Trump made posts on his Truth Social account that seemed to hint at significant upcoming changes. His comments, such as “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” and “THIS IS A GREAT TIME TO BUY!!! DJT,” were seen as precursors to the market-moving announcement.
The senators fear that the President, his family, and advisors may have used non-public information to make investment decisions, potentially violating legal and ethical standards. These concerns were amplified as stock prices plunged in the morning, only to skyrocket after Trump’s Truth Social post. The Nasdaq surged by 12.1%, and the Dow jumped by 7.8%, marking its largest one-day increase in five years.
Senators’ Call for Investigation
In their letter, Schiff and Gallego have urged the Office of Government Ethics to look into whether any White House officials or executive branch employees were privy to the tariff changes before they were made public. They are particularly interested in understanding if any individuals with insider knowledge engaged in financial transactions based on that information.
The senators are also seeking clarification on whether Trump’s family members were briefed before the tariff announcement and if there is any evidence of communication between the President’s family, executive branch officials, or special government employees. Treasury Secretary Scott Bessent and White House press secretary Karoline Leavitt emphasized that the tariff decision was part of a strategic plan and that numerous countries had expressed interest in negotiations.
However, Trump later contradicted these statements by claiming that the decision was made early that morning without the involvement of legal advisors. This discrepancy raises questions about the transparency and decision-making process within the administration.
Expert Insights on Insider Trading
Michael Guttentag, a professor at Loyola Law School specializing in insider trading, shed light on the legal implications of these events. While there is no universal national law on insider trading, the Stock Act of 2012 prohibits members of Congress and executive branch officials from engaging in such practices. Guttentag emphasized the importance of reviewing trading records to determine if any illicit activities occurred.
He referenced the case of former U.S. Rep. Chris Collins, who was convicted of insider trading after using confidential information to benefit his family’s investments. Guttentag stressed the need for thorough investigations by the Justice Department and Securities and Exchange Commission to maintain ethical standards in government.
As Democrats and Republicans clash over the seriousness of the allegations, Senator Elizabeth Warren emphasized the need for an independent investigation to uncover the truth. Senator Dick Durbin echoed these sentiments, calling for closer scrutiny of the administration’s financial dealings.
On the other hand, Senator John Cornyn dismissed claims of insider trading as baseless, suggesting that the stock market’s fluctuations were common knowledge and not indicative of any wrongdoing. Despite the political divide, the call for transparency and accountability remains paramount in addressing these allegations.
In conclusion, the investigation into potential insider trading within the White House highlights the importance of upholding ethical standards and ensuring fairness in financial markets. As the story unfolds, the public is watching closely to see if justice will prevail in the face of political controversy and economic uncertainty.
