Investigation into Potential Insider Trading Linked to Trump’s Tariff Announcements

New York Attorney General Letitia James is currently investigating the possibility of insider trading related to President Donald Trump’s recent announcement of a temporary halt on specific tariffs. This inquiry, still in its early stages, was confirmed by James’ office and initially reported by CNN.

Details of the Tariff Announcement

On April 9, just before the opening of U.S. markets, President Trump took to Truth Social to encourage buying stocks, describing it as a “GREAT TIME TO BUY.” Later that day, he announced a 90-day suspension of “reciprocal” tariffs, maintaining a 10% general duty on most imports. This move led to a significant rebound in the stock market, with major indexes like the Dow Jones Industrial Average, S&P 500, and Nasdaq experiencing substantial gains.

However, the tariff pause did not apply to China, where President Trump introduced a steep 125% duty, resulting in a total tariff of 145% on most goods and services from China. Additionally, the administration temporarily reduced tariffs on electronic imports from China, pending a supply chain review.

Liberal Criticism and Calls for Investigation

Democrats, including Senator Elizabeth Warren, have voiced concerns that individuals close to the White House might have exploited advance knowledge of the tariff suspension to profit from market movements. Warren emphasized the necessity of an investigation to ensure that neither President Trump nor his close associates had improperly benefited from insider information.

Background of Letitia James and Previous Conflicts with Trump

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Attorney General Letitia James, a Democrat with significant investigatory powers under the 1921 Martin Act, has been a frequent adversary of President Trump. Her office previously filed a comprehensive business fraud lawsuit against the Trump Organization, alleging manipulation of asset valuations for favorable business dealings and tax reductions. Following this, in early 2023, a New York judge ruled that Trump must pay $354.8 million in penalties, a decision currently under appeal.

President Trump has accused James of conducting a racially motivated “witch hunt” and harboring a political bias against him in her legal actions.