Democrats Investigate Potential Market Manipulation After Trump’s Tariff ‘Pause’

In a dramatic shift that sent Wall Street soaring Wednesday, President Donald Trump announced a 90-day “pause” on most of his planned trade tariffs, contradicting his earlier assertions that such measures were permanent. The announcement came just hours after Trump posted messages on social media encouraging people to invest in the market.

“THIS IS A GREAT TIME TO BUY!!!” Trump wrote on his social media platform, just four minutes after telling followers to “BE COOL! Everything is going to work out well.”

The timing of these posts, followed by a policy announcement that triggered significant market gains, has raised questions about potential market manipulation among ethics experts, lawmakers, and financial observers.

“This is a scenario that could expose the president to accusations that he engaged in market manipulation,” Richard Painter told NBC News. Painter, who served as chief ethics lawyer under President George W. Bush and now teaches government ethics at the University of Minnesota’s law school, described Trump’s social media posts as “a terrible idea.”

The White House has firmly denied any impropriety, but the sequence of events prompted swift reactions from congressional Democrats. Senators Adam Schiff of California and Ruben Gallego of Arizona have formally requested an investigation from the Office of Government Ethics, highlighting concerns about the president potentially using his policy decisions to influence market movements after encouraging public investment.

Trump’s abrupt reversal on tariffs represents a significant policy shift. For months, the president had repeatedly insisted his trade tariffs were “here to stay” and would “never change,” positioning them as central to his economic strategy. The announcement of a pause signals either a tactical recalibration or response to mounting economic pressure.

Market analysts note that Trump’s trade policies had contributed to recent market volatility. Major indexes had experienced significant sell-offs in the days leading up to this announcement, with investors expressing concern about the impact of expansive tariffs on global supply chains, consumer prices, and corporate profits.

The president’s history with financial markets and potential manipulation has come under scrutiny before. A New York Times investigation in 2018 detailed allegations that during the 1980s, Trump “became notorious for leaking word that he was taking positions in stocks, hinting of a possible takeover, and then either selling on the run-up or trying to extract lucrative concessions from the target company to make him go away.” The Times characterized this as “a form of stock manipulation with an unsavory label: ‘greenmailing.'”

While no concrete evidence of market manipulation has emerged in the current situation, ethics watchdogs point to the episode as illustrative of the unique challenges presented when a sitting president maintains direct communication with the public about financial markets while simultaneously making policy decisions that can dramatically affect those markets.

Financial regulation experts note that traditional market manipulation cases typically require evidence of intent and false statements designed to move markets for personal gain. The complexity increases substantially when the individual in question has legitimate policy-making authority.

The 90-day pause on tariffs will temporarily alleviate pressure on numerous industrial sectors, particularly automotive, technology, and consumer goods manufacturers that had voiced concerns about rising costs. International trading partners had also threatened retaliatory measures that could have escalated into broader trade disputes.

As markets digest the implications of this policy shift, attention now turns to whether the pause represents a genuine reconsideration of Trump’s trade strategy or merely a temporary measure designed to ease market concerns in the short term.

Trump has consistently denied any wrongdoing in relation to his business practices and policy decisions. The coming weeks will likely bring additional scrutiny as ethics officials consider the senators’ investigation request and economists assess the broader implications of the tariff pause on international trade relations.