Tuesday, 10 June 2025
Tuesday, 10 June 2025
Seems like Donald Trump's tariff flip-flop has more to it than meets the eye.
After putting a 90-day pause on reciprocal tariffs for all countries except China, the US President is now faced with allegations of "insider trading" in the US stock markets.
Some lawmakers are asking tough questions, such as "Did the President manipulate the stock market?"
Trump’s sweeping import taxes triggered panic across global markets and sent tremors through the US economy. As trading opened on Wednesday morning, the New York Stock Exchange plunged. Then at 9:37am (US time), Trump posted on Truth Social: “THIS IS A GREAT TIME TO BUY!!! DJT.”
And then came the 90-day pause...
Just under four hours later, Trump announced the 90-day pause on all trading partners. But he didn't spare China. Tariffs on Chinese imports were raised to 125 per cent. The markets then responded with a sharp rally.
The S&P 500 jumped 9.5 per cent, regaining nearly $4 trillion in market value — about 70 per cent of what had been wiped out in the four previous trading days. The Dow Jones surged by 2,800 points. Traders who bought shares at low price on Wednesday morning walked away with sufficient profits.
Before this day, the Nasdaq had seen its biggest single-day gain in 2008, when it peaked by nearly 12 per cent.
Covid era volatility returns
Trump's turnabout on Wednesday, which came less than 24 hours after steep new tariffs kicked in on most trading partners, followed the most intense episode of financial market volatility since the early days of the Covid-19 pandemic.
The relief spread through Asian markets as they opened on Thursday with Japan's Nikkei index surging 8% while European futures also pointed to a sharp rebound. Even Chinese stocks rose, propped up by hopes of state support, although its yuan currency fell to the lowest level since the global financial crisis.
Insider trading scandal brewing: Chris Murphy
Democratic Party Senator Chris Murphy said, “An insider trading scandal is brewing. Trump's 9:30am tweet makes it clear he was eager for his people to make money off the private info only he knew. So who knew ahead of time and how much money did they make?”
Trump creating giant market fluctuations: Adam Schiff
California Senator Adam Schiff said, "Trump is creating giant market fluctuations with his on-again, off-again tariffs. These constant gyrations in policy provide dangerous opportunities for insider trading. Who in the administration knew about Trump's latest tariff flip flop ahead of time? Did anyone buy or sell stocks, and profit at the public’s expense? I'm writing to the White House — the public has a right to know. Is Donald Trump's inner circle illegally profiting off of these huge swings in the stock market by insider trading? Congress must find out. I'm writing to the White House to demand who knew in advance that the president was gonna once again flip flop on tariffs? And are people cashing in? There is just all too much opportunity for people in the White House and the administration to be insider trading.”
Trump helping out his buddies: Melanie Stansbury
Representative Melanie Stansbury said, “Was the fix in when he posted this today? Looks like insider trading to me. Not only is it illegal, it has thrown our economy and markets into chaos for days. And Trump is helping out his buddies along the way.”
Social media smells 'scam'
Netizens were fuming.
One user posted on X: “Insider trading is illegal — but nothing will happen to Trump or anyone else involved in this.”
Another wrote: “Insider trading, pump and dump, criminal market manipulation. Is there anything Trump isn't guilty of?”
In four hours, the US economy saw a dip, a spike — and now faces a question: did the President use policy to manipulate the markets?
For now, the markets are back in the green. But the questions are only growing.
