Trump’s tariff flip and social media post sent stocks soaring, sparking ethics and insider trading claims

Wall Street went into a frenzy this week after President Donald Trump posted a bullish message on social media, only to follow it hours later with a dramatic policy reversal on tariffs. Now, critics are accusing him of deliberately manipulating the markets for political or personal gain — and calling for an investigation.

The controversy began on Wednesday morning when Trump took to his Truth Social platform and posted in all caps: “THIS IS A GREAT TIME TO BUY!!!” The stock market, which had been falling for days amid growing fears over Trump’s aggressive new tariffs, responded cautiously. But the real shock came less than four hours later.

By mid-afternoon, Trump announced he would pause the harshest of his tariffs on most countries — a move that immediately sparked a stock rally. The Dow Jones Industrial Average surged by nearly 3,000 points by the closing bell. Investors who followed Trump’s morning tip would have seen major gains by the end of the day.

The sudden shift raised eyebrows across the political spectrum. Democratic senators Adam Schiff and Ruben Gallego wrote to the White House demanding “an urgent inquiry” into whether Trump, his family, or officials close to him had engaged in insider trading. Senator Elizabeth Warren echoed the call on the Senate floor, labelling it “corruption in plain sight.”

White House spokesperson Kush Desai pushed back against the claims, saying Trump’s comments were meant to reassure investors amid market volatility. “It is the responsibility of the President to calm markets and protect economic confidence,” Desai told NPR.

But critics weren’t satisfied. Richard Painter, who served as chief ethics lawyer under President George W. Bush, warned that Trump’s actions set a dangerous precedent. “You can’t have the President advising people when to buy stocks at the same time he’s making decisions that move markets,” he said. “Anyone in the Bush administration who did that would’ve been fired.”

Though Painter stopped short of accusing Trump of outright manipulation, he noted that this fits a pattern. “Financial conflicts of interest have plagued Trump since 2016. It’s only getting worse.”

Trump’s close ties to the cryptocurrency industry have already raised alarm bells. He has publicly backed the sector, owns crypto-related assets, and appointed pro-crypto officials to key roles. His moves toward looser regulation have drawn scrutiny from ethics watchdogs.

Despite the furore, there is little expectation of real consequences. With Republicans holding both the House and Senate, Trump’s allies appear disinclined to pursue any inquiries. Even the Securities and Exchange Commission (SEC) — the agency responsible for investigating insider trading — is now headed by a Trump appointee. The Senate confirmed Paul Atkins to the role just hours before the market-altering posts.

And earlier this year, Trump signed an executive order extending presidential power over independent agencies, including the SEC — a move that critics say undermines regulatory integrity.

While ethics experts argue the behaviour warrants investigation, they admit the political reality makes accountability unlikely. “We may never know if someone profited off this,” said Painter. “But it’s another reminder why financial transparency in government matters.”

As markets continue to respond to Trump’s posts and policy swings, concerns grow that the president is using his influence not only to shape public opinion but also to steer investor behaviour — in ways that may benefit those with early access to his plans.