TLDR
- Senator Elizabeth Warren calls for investigation into Trump’s tariff policies, citing potential market manipulation
- Warren claims Trump’s tariff flip-flopping, especially on China (105% to 125%), created market uncertainty
- Trump posted “THIS IS A GREAT TIME TO BUY!!! DJT” hours before announcing a 90-day pause on most tariffs
- The S&P 500 surged 9.5% after the tariff pause announcement, recovering about $4 trillion in market value
- Critics, including former White House ethics lawyer Richard Painter, question if Trump violated securities laws
U.S. Senator Elizabeth Warren has called for an investigation into President Donald Trump’s tariff policies, suggesting they may have been designed to manipulate markets for the benefit of Wall Street insiders.
Warren’s demand comes after a series of rapid changes in tariff policies that caused market volatility, followed by a presidential social media post encouraging people to buy stocks.
Warren took to social media platform X on Wednesday, stating:
“I’m calling for an investigation into whether President Trump manipulated the market to benefit his Wall Street donors—all while working people and small businesses paid the price.”
She questioned whether Trump helped insiders profit from his “tariff flip-flopping,” adding that “it sure looks like corruption.”
I'm calling for an investigation into whether President Trump manipulated the market to benefit his Wall Street donors—all while working people and small businesses paid the price.
Did Trump help insiders cash in on his tariff flip-flopping? It sure looks like corruption. pic.twitter.com/5QZ1X5YOpz
— Elizabeth Warren (@SenWarren) April 9, 2025
The Massachusetts Senator claims that Trump has been constantly changing tariffs, creating confusion across global markets. She pointed to major shifts in China’s tariff rates, which reportedly jumped from 105% to 125% in just one day.
Market Response to Trump’s Actions
On Wednesday morning, as U.S. stocks were fluctuating, President Trump posted on Truth Social at 9:37 a.m.:
“THIS IS A GREAT TIME TO BUY!!! DJT.”
Less than four hours after this post, Trump announced a 90-day pause on almost all tariffs.
The market response was immediate and large. By the end of trading, the S&P 500 had surged by 9.5%. This represented a recovery of approximately $4 trillion in market value, roughly 70% of the losses sustained over the previous four days.
Warren highlighted this sequence of events in her criticism. She claimed that after announcing new tariffs, Trump halted them briefly, giving markets a “cool-down period” before a “final crash.” During this time, according to Warren, Trump sent a message to his “billionaire buddies, suggesting them this is a great time to buy.”
Calls for Congressional Action
Warren has escalated her concerns beyond just calling for an investigation. In another post on X, she stated: “I’m live on the Senate floor calling on Republicans in Congress to help us put an end to Donald Trump’s tariff chaos.”
She expressed belief that the tariff policies are harming the U.S. economy, with more damage likely if congressional action is not taken. “This chaos will keep hurting the American people. Maybe the President is looking for an exit ramp. Maybe he’s not. Either way, this will only end when Congress reins Trump in,” Warren said.
Trump’s recent tariff policies included a 90-day pause on many countries, while tariffs on China were reportedly raised to 125%. The rapid changes and uncertain future direction of these policies have left traders and investors uncertain, according to Warren.
Meanwhile, concerns about the broader economic impact of these policies continue to grow. Warren claims chances of recession and inflation are rising, while economic indicators like PMI and JOLTS data are weakening as stocks and markets lose value.
Warren isn’t alone in her concerns. Former White House ethics lawyer Richard Painter has also questioned whether Trump’s social media message violated securities laws. “The people who bought when they saw that post made a lot of money,” Painter remarked, suggesting potential insider trading violations.
When questioned about whether he knew of the planned tariff pause before his social media post, President Trump reportedly gave what AP described as a “vague response.” He claimed the decision had been made “that morning” but added that he had been considering it for “the last few days.”
The Senator has characterized Trump’s actions as “trashing the American economy” with uncertain tariff policies. She emphasized that “no one knows what the tariffs could be tomorrow, next week, or the coming month,” creating a climate of uncertainty for businesses and investors.
Warren’s call for a probe centers on whether these actions constitute market manipulation designed to benefit specific investors with advance knowledge of policy changes. “Was that market manipulation, corruption? An independent investigation into the matter is much needed,” she stated.
