Senator Adam Schiff is urging Congress to investigate whether President Donald Trump engaged in insider trading or market manipulation by abruptly halting a set of tariffs, causing stock prices to soar. In an interview with TIME, Schiff expressed his determination to uncover any potential wrongdoing. Following Trump’s tariff pause announcement, which led to a significant surge in the S&P 500, Schiff raised concerns about possible insider trading by the administration. He emphasized the need for a thorough inquiry into the matter. Schiff’s call for an investigation was supported by Senator Ruben Gallego, who co-signed a letter requesting an urgent inquiry into whether Trump and his associates may have engaged in illegal financial activities. The letter highlighted the suspicious market reactions following Trump’s tariff policy changes and called for an examination of government officials’ financial transactions related to the matter. The timing of Trump’s announcement and the subsequent market response have sparked skepticism in Congress, with lawmakers questioning the motives behind the tariff decision. Senator Tim Kaine and Senator Tina Smith also expressed concerns about potential market manipulation and the need for further investigation into the issue.
“I hadn’t considered that.” Rep. Steven Horsford, a Nevada Democrat, was one of the first to question if the tariff pause was connected to market manipulation during a tense hearing with Trump’s trade representative, Jamieson Greer. Horsford exclaimed, “This is amateur hour. You just got the rug pulled out from under you,” demanding to know if the administration intentionally influenced the markets. The market’s swift and positive response to Trump’s decision included a more than 7% increase in stocks and a closing jump of over 9%. Bond yields, which had been increasing due to economic concerns, eased, and oil prices also rebounded.
Treasury Secretary Scott Bessent, a former hedge fund manager, revealed that the tariff pause was part of the intended strategy to allow for tailored negotiations with allies. Trump’s explanation added to the uncertainty, mentioning “yippy” individuals who were fearful and highlighting his observation of the bond market post-announcement. He emphasized the need for flexibility and acknowledged the recent grim outlook.
Rep. Schiff criticized Trump’s economic policymaking, emphasizing the importance of certainty and predictability for American businesspeople. Schiff, a prominent Trump critic, played key roles in Trump’s first impeachment trial and the response to the Russia investigation. He led the efforts to impeach Trump in 2018 over the Ukraine pressure campaign.
For inquiries, contact Nik Popli at nik.popli@time.com.
