Trump’s Tariff Reversal: Evidence of Stock Manipulation or Market Chaos?
Did Trump’s Abrupt Policy Shift Create a Billion-Dollar Opportunity for Insiders? SEC Investigations Raise Alarming Questions.
An unprecedented market surge following President Trump’s April 9 tariff pause has sparked allegations of insider trading and market manipulation. With millions in suspicious options trades placed just before the announcement, critics suggest this may be the most controversial financial scandal of the year.
Timeline of Events
April 2, 2025: Trump announces a sweeping "reciprocal tariff" regime targeting nearly all U.S. trade partners, including a 125% tariff on Chinese goods. Markets plummet, with the Dow Jones Industrial Average losing over 1,000 points.
April 9, 2025 – 9:37 AM ET: Trump posts on Truth Social: “THIS IS A GREAT TIME TO BUY!!! DJT.” Markets remain volatile but largely flat.
April 9, 2025 – 1:15 PM ET: Trump announces a 90-day pause on most tariffs (excluding China), instead implementing a 10% blanket tariff. Markets respond with a historic surge: the S&P 500 gains 9.5%, one of the largest single-day jumps since World War II.
Suspicious Trading Activity
Options Market Anomalies: Just minutes before the tariff pause announcement, unidentified traders placed millions of dollars in bullish options bets on the Nasdaq and S&P 500. These trades yielded massive profits following the market's rebound. Rep. Alexandria Ocasio-Cortez noted that Nasdaq call option volumes spiked significantly 20 minutes before the news broke.
Insider Trading Concerns: Democrats allege that Trump or close associates may have tipped off allies to buy stocks in advance of the announcement. Sen. Adam Schiff highlighted that Trump’s “BUY” post coincided with private deliberations about the tariff reversal, raising concerns about who had prior knowledge.
Key Allegations
Market Manipulation: Critics argue that Trump created a reverse "pump and dump" scenario—first sinking the market with the tariff announcement, then driving a surge through the pause. Former White House ethics lawyer Richard Painter commented, “If a Bush administration official did this, they’d be fired.”
Insider Trading: While Trump claimed the tariff reversal decision was made "fairly early" on April 9, this timeline raises questions about who was informed before the public announcement. Sen. Elizabeth Warren questioned whether nonpublic information was shared with allies or donors.
New Developments
1. New York Attorney General Launches Probe: Letitia James has initiated a preliminary investigation into potential insider trading tied to the tariff pause. Her office is reviewing whether individuals with advance knowledge profited from the subsequent market surge.
2. Marjorie Taylor Greene’s Trades Under Scrutiny: Rep. Greene disclosed major stock purchases in Amazon, Nike, and Tesla on April 8 and 9—just before the tariff announcement. These trades, totaling $21,000 to $315,000, have raised concerns about possible insider knowledge.
3. Congressional Pressure Builds: Senators Schiff, Warren, and others have urged the SEC to investigate whether the policy shift was exploited for profit. They cited Trump’s social media timing as a key issue.
4. Legal Challenges to Tariff Authority: Five U.S. small businesses have filed a lawsuit arguing that the new tariffs violate the International Emergency Economic Powers Act (IEEPA), overstepping executive authority.
5. Trade Oversight Legislation Proposed: The bipartisan Trade Review Act of 2025 would require Congress to approve any new tariffs—a response to concerns about unchecked executive influence on trade policy.
White House Response
Denials: Officials insist Trump’s "BUY" post was meant to reassure markets.
Dismissals: Spokesperson Kush Desai labeled the allegations "partisan theatrics," reaffirming Trump’s focus on economic pressure against China.
Unanswered Questions
Who Profited? Direct evidence remains elusive, but the timing of trades and Trump’s posts remains highly suspect.
Policy Coordination? Trump's trade representative denied a reversal just hours before it was announced, raising the possibility of internal confusion or misdirection.
Legal Risk? Presidents may be exempt from insider trading laws, but aides or donors who acted on nonpublic information could face serious charges.
Conclusion
Though no definitive wrongdoing has been proven, the convergence of high-stakes policymaking, market reaction, and trading activity has sparked bipartisan alarm. As federal and state investigations progress, this incident may redefine the boundaries between governance and personal gain in American financial politics.
Sources: NPR | CNN | Al Jazeera | Reuters | TIME | CNBC | New York Post | People.com | Business Insider | The Guardian | Wikipedia
I saw somewhere that trump is on record bragging about how some of his 'bros' made millions.