Senator Adam Schiff has called on Congress to investigate whether President Donald Trump engaged in insider trading or market manipulation when he abruptly suspended a broad set of tariffs, sending stock prices soaring.
Points of attention
- Senator Adam Schiff has raised concerns about possible market manipulation by President Trump after the sudden suspension of tariffs, prompting a surge in stock prices.
- The call for investigation into Trump's actions focuses on potential insider trading and enrichment, with Senator Schiff emphasizing the need to uncover the truth.
- The market reaction to Trump's tariff announcement was significant, with stocks rising over 9% and other economic indicators experiencing immediate shifts.
Senator Schiff calls for investigation into Trump tariffs
"I'm going to do everything I can to find out," Schiff, a California Democrat, told TIME. "Family coins, memes, and everything else is not beyond insider trading or enrichment. I hope to find out soon."
Schiff's comments about the previously unreported formal investigation came shortly after the S&P 500 index rose more than 9% on Wednesday afternoon after Trump announced the suspension of tariffs.
“IT’S A GREAT TIME TO BUY!!!” Trump posted on Truth Social minutes after the market opened on Wednesday, along with the letters “DJT,” which stand for both his initials and his media company’s sticker.
The White House did not immediately respond to a request for comment.
Schiff became the first senator to openly call on Congress to investigate potential insider trading by the Trump administration after the president's sharp refusal to impose new tariffs.
Such investigations typically fall under the purview of powerful congressional groups such as the Senate Judiciary Committee or the Senate Finance Committee. Both are led by Republicans — Sen. Chuck Grassley of Iowa and Sen. Mike Crapo of Idaho — who have largely avoided conflict with the White House. Individual lawmakers, such as Schiff, can investigate cases through their personal offices, although such investigations do not have the authority to subpoena a judge.
Senator Tina Smith of Minnesota, when asked by TIME whether Trump should be investigated for possible market manipulation, said: "That's a great question. He certainly had a lot to gain. I hadn't thought about that."
Earlier on April 9, Congressman Stephen Horsford, a Democrat from Nevada, was among the first to question whether the tariff pause was related to market manipulation, as the news emerged in the middle of heated hearings with Trump Trade Representative Jamison Greer, who had strongly defended the tariffs.
The market reaction to Trump's decision was swift and euphoric. Stocks jumped more than 7% in the minutes after the announcement, eventually rising more than 9%. Bond yields, which had been rising on fears of an economic recession, fell. Oil prices, which had also been falling, recovered.
The California senator has long been one of Trump's most vocal critics. He was the lead prosecutor in Trump's first impeachment trial and a central figure in Congress's response to the Justice Department's Russia investigation.
Although he did not initiate the 2017 congressional investigation into Trump's ties to Russia, Schiff became the most vocal Democrat on the committee, warning about Trump's deference to autocratic leaders. The Republican-led House of Representatives later censured Schiff for his comments during the investigation.
