Trump's tariff maneuver sparks insider trading allegations

Public radio NPR quotes the opinion of Richard Painter, the chief White House ethics lawyer under President George W. Bush:

- We can’t have senior public officials, including the president, talking about stock prices and where to buy or to sell at the same time as they are making and announcing decisions that have a dramatic impact on stock prices.

Painter, a professor at the University of Minnesota, referred to accusations against Trump concerning insider trading, which involves using confidential information about companies, trends, or decisions affecting capital markets for the purpose of gaining benefits or favouring selected investors.

Before announcing on Wednesday at 3 PM Eastern Time his decision to suspend tariffs on imports from nearly 60 countries for 90 days, Trump wrote on his social media that “now is the best time to buy stocks.” Once the official information about deferring the tariffs' implementation was announced, stock indices soared, resulting in huge gains for investors who had previously purchased assets.

- If anyone in the Bush administration had made similar public statements urging people to buy or sell stocks - Painter said, also emphasising that Trump is at least "pushing the boundaries" concerning acceptable behaviours for a politician.

The American "Newsweek" points out that, for instance, Republican Congresswoman Marjorie Taylor Greene, one of the most ardent “Trumpists,” purchased a large batch of stocks a few days before the tariff suspension decision, when stock market prices were plummeting. The rebound in the prices of these securities must have brought Taylor Greene considerable benefits, writes the magazine. This raises the question of whether Trump’s close associates could have known there would be a resurgence in stock value after a significant markdown.

Although lawmakers are allowed to buy and sell stocks, they are required by the Stop Trading on Congressional Knowledge Act to publicly disclose any stock trades valued over $1,000 within 45 days of the transaction - comments "Newsweek".

The "Arizona Republic" writes that on the same day he announced the 90-day tariff suspension, Trump hosted a group of "ultra-wealthy" guests in the Oval Office and "jokingly/not jokingly mentioned how much they had profited from his actions".

The President pointed to Charles Schwab and stated he made $2.5 billion that day, reports "AR". Schwab is a billionaire, the founder of the international financial services company, Charles Schwab Corporation, and a significant sponsor of the Republican Party.

Democratic politicians accused the President of market manipulation and approached the government ethics office to review transactions conducted by Trump administration officials who may have been aware of his tariff plans.

Senators Adam Schiff and Ruben Gallego wrote, "This sequence of events raises grave legal and ethics concerns. The President, his family, and his advisors are uniquely positioned to be privy to and take advantage of non-public information to inform their investment decisions."

The chances of resolving this matter, however, are slim - according to media and lawyers.

With Republicans holding the majority in the House of Representatives and the Senate, there appears to be minimal willingness to challenge Trump’s actions. This situation mirrors the approach of the Securities and Exchange Commission (SEC), which is tasked with overseeing insider trading cases. On Wednesday, the Senate approved Trump’s appointment of Paul Atkins as the new SEC chairman. Additionally, back in February, the president expanded his oversight of independent market regulators, such as the SEC, through an executive order, as NPR reports.

The market manipulation allegations will also not be addressed by either the Senate's Judiciary Committee or the Senate Finance Committee. "They are controlled by Republicans who either worship Trump or fear him. Or both" - writes "Arizona Republic".