Democrats Urge SEC to Investigate Trump’s Tariff Policy

A group of senior Democrats has penned a letter to the U.S. Securities and Exchange Commission (SEC) asking it to investigate whether Donald Trump violated securities laws, participated in insider trading and manipulated global markets after making a breakneck U-turn on his global reciprocal tariff policy.

The Letter

“We urge the SEC to investigate whether the tariff announcements, which caused the market crash and subsequent partial recovery, enriched administration insiders and friends at the expense of the American public and whether any insiders, including the president’s family, had prior knowledge of the tariff pause that they abused to make stock trades ahead of the president’s announcement,” the letter, led by Massachusetts senator and former presidential candidate Elizabeth Warren, says.

Senators Chuck Schumer, Mark Kelly, Ruben Gallego, Adam B. Schiff and Ron Wyden co-signed the written plea.

Market Turmoil

They argue that the president has, in recent days, “announced a series of erratic, reckless tariffs, leading to significant market turmoil,” that may equate to insider trading and other unlawful activity.

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“As a direct result of this chaos, the U.S. financial markets have experienced dramatic declines over the course of just a few days,” the letter continued, citing staggering losses on the American stock exchange, including a $5.6-trillion tumble in S&P 500 market value.

Trump’s Social Media Posts

At about 9:30 a.m. on Wednesday, before Trump put a pin in his hefty reciprocal tariffs, he wrote on Truth Social, “THIS IS A GREAT TIME TO BUY!!!”

Hours after he seemingly urged people to purchase stocks, the president took to Truth Social again, this time to announce an abrupt 90-day pause on the sweeping reciprocal levies he imposed on 90 countries less than 24 hours prior.

President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025, in Washington, DC.
Chip Somodevilla/Getty Images

“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!” He wrote shortly after 1:00 p.m. on Wednesday.

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Market Bounce-Back

Senator Warren and her colleagues argue that Trump’s ‘time to buy’ post “appears to have previewed his plans” to pause the tariffs, which could have benefitted people close to the president.

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The move prompted a startling market bounce-back on Thursday, with the S&P 500 boasting its best day since its recovery from the 2008 financial crisis.

“The stock market saw one of [its] best days in history, with the S&P 500 surging 9.5% (one of its strongest performances in over 80 years), Dow Jones rising 7.9%, and the Nasdaq composite rising 12.2%,” the letter states.

Investigation and Aftermath

“It is unclear which officials and affiliates of President Trump had advance knowledge of his plans to delay tariffs–but insiders may have known that he was going to announce a tariff pause and that the market would improve,” it continues.

As a result, the group of senators has urged the SEC to investigate whether Trump’s actions constitute market manipulation, insider trading, or other violations of securities laws, calling the president’s actions “unconscionable” while American families face government “manufactured” financial uncertainties.

“Insiders may have actively profited from the market volatility and potentially perpetrated financial fraud on the American public,” the letter says.

Trump boasted about the financial precariousness caused by his see-sawing fiscal policy during a speech at the National Republican Congressional Committee Dinner on Tuesday night, telling the audience that countries were calling him up, begging to make deals before tariffs hit at 12:01 a.m. the following morning.

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“I’m telling you, these countries are calling us up, kissing my ass,” he said.

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Trump brags countries are ‘kissing my a**’ to negotiate tariffs

At the same time that the president temporarily paused sweeping reciprocal tariffs, he also announced a 125 per cent tax on China, up from the 104 per cent levy he’d already imposed that day.

China retaliated by raising tariffs on the U.S. to 125 per cent as of Friday. In response, the U.S. said its tariffs against China were in fact set at 145 per cent due to an existing fentanyl-related charge.

Conclusion

The letter from the group of senators highlights the concerns surrounding Trump’s tariff policy and its potential impact on the global market. The investigation by the SEC will aim to determine whether Trump’s actions constitute market manipulation, insider trading, or other violations of securities laws.

Frequently Asked Questions

<p,Q: What is the SEC investigating?

A: The SEC is investigating whether Trump’s tariff policy and social media posts constitute market manipulation, insider trading, or other violations of securities laws.

Q: Who signed the letter to the SEC?

A: The letter was signed by Senators Elizabeth Warren, Chuck Schumer, Mark Kelly, Ruben Gallego, Adam B. Schiff, and Ron Wyden.

Q: What is the potential impact of Trump’s tariff policy on the global market?

A: The potential impact of Trump’s tariff policy on the global market is significant, with concerns surrounding market turmoil, insider trading, and financial fraud.

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