Trump's 'buy' tip before tariffs pause raises calls for insider trading probe

A firestorm of scrutiny has erupted over US President Donald Trump's role in Wednesday's dramatic stock market rebound, after he posted a pair of bullish messages on social media just hours before announcing a pause on a sweeping set of tariffs. Trump's posts, one of which urged Americans to buy into the market and included the ticker symbol for his own media company, preceded a stunning rally that saw the S&P 500 surge by 9.5 per cent, the Nasdaq jump nearly 12 per cent, and the Dow Jones Industrial Average climb 8 per cent-adding roughly USD 4 trillion in value.

Shortly after markets opened, President Trump took to his Truth Social platform with a pair of upbeat posts. "BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!" he wrote, followed closely by a more direct appeal to investors: "THIS IS A GREAT TIME TO BUY!!! DJT."

The latter message quickly raised eyebrows-not just for its timing, but for its use of "DJT", which is both Trump's initials and the ticker symbol of his recently listed media company, Trump Media.

At the time of the posts, markets were still reeling from a days-long selloff, trading hesitantly. But within hours, Trump announced a 90-day pause on sweeping tariffs against multiple countries. The move sent financial markets soaring.

Trump's media company, whose stock trades under the "DJT" ticker, outpaced even the major indices, closing up 22.67 per cent. That rally added USD 415 million in value to Trump's 53 per cent ownership stake in the company, held in a trust managed by his son, Donald Trump Jr.

Only one stock - Tesla, another favourite among Trump administration insiders - narrowly outperformed Trump Media on the day, edging it out by two-hundredths of a percentage point.

The extraordinary confluence of events-market-boosting statements followed by a major policy shift that disproportionately benefited a company Trump is personally tied to-set off a wave of suspicion. Online, some users dubbed the market surge the "Trump Pump", while others questioned whether the President or his allies had engaged in market manipulation.

Senator Adam Schiff, a Democrat from California, became the first lawmaker to publicly call for an investigation into potential insider trading or market manipulation linked to Trump's remarks and subsequent tariff decision.

"I'm going to do my best to find out," Schiff told TIME. "Family meme coins and all the rest of it are not beyond insider trading or enriching themselves. I hope to find out soon."

Schiff also alluded to earlier controversies involving the President, notably the launch of the $TRUMP meme coin, in which a select group of investors stood to gain from the coin's success.

While any formal congressional investigation would typically be conducted by committees like Senate Judiciary or Senate Finance-both currently chaired by Republicans-Schiff indicated he may pursue a preliminary inquiry through his own office, even if it lacks subpoena power.

Other Democrats expressed similar unease. "When my own barber asks me whether Donald Trump is selling short or doing this to try to make money for himself, it shows that a lot of people are pretty suspicious about what's going on," said Senator Tim Kaine of Virginia.

Senator Tina Smith of Minnesota admitted she had not considered the possibility, but said, "It's a great question. He certainly had a lot to gain."

In a congressional hearing held around the time of the announcement, Representative Steven Horsford of Nevada confronted Trump's trade representative, Jamieson Greer, who had been staunchly defending the tariffs moments before the pause was announced.

"This is amateur hour. You just got the rug pulled out from under you," Horsford said, demanding to know if the administration had intentionally moved the markets. "This is not a game. This is real life."

Amid the outcry, some members of the administration attempted to deflect the criticism. Commerce Secretary Howard Lutnick defended Trump's posts during an appearance on CNBC, characterising them as expressions of optimism.

"Donald Trump understands that America is the greatest country, all right? We are the greatest country, and we have the capacity for incredible greatness. But someone needs to take the shackles off," he said.

Treasury Secretary Scott Bessent, a former hedge fund manager, offered a more strategic explanation, saying the tariff pause was intended to make room for targeted negotiations with US allies.

"The only certainty we can provide is that the US is going to negotiate in good faith," he said. Bessent also confirmed that he had spoken at length with Trump before the decision, adding that the move had helped "goad China into a bad position."

Asked later about when he made the decision to suspend the tariffs, Trump gave conflicting responses, first saying it was made "this morning" before later adding it had occurred "fairly early this morning".

The White House did not clarify the exact timing, but spokesperson Kush Desai defended the President's market comments as part of his role. "It is the responsibility of the President of the United States to reassure the markets and Americans about their economic security in the face of nonstop media fearmongering," he said in a statement to TIME.

Trump, meanwhile, appeared pleased with the outcome. He described the bond market as "beautiful" and insisted that "you have to be flexible" in policymaking. Still, for some on Capitol Hill, the issue goes beyond economic outcomes.

"What American businesspeople need is some certainty, some predictability," Schiff said. "They're getting anything but. Americans who have seen their retirement savings wiped out need to be made whole."

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