Trump caused a stock market crash with his tariffs. Now he has announced that he will expose the tariffs – and thus triggered an euphoria. Before his U -turn, he recommended the purchase of stocks. Critics therefore speak of possible insider trade.
Donald Trump’s surprising course swivel and the temporary withdrawal just introduced tariffs keeps the world in suspense. After major faults on the shares and financial markets, the US president surprisingly decided worldwide to grant a break from certain tariffs for 90 days. He only tightens the course towards China.
Christian Feld, ARD Brussels, and Jörg Endriss, ARD Beijing, to reactions of the EU and China on Trump’s customs policy
The stock exchanges reacted to the withdrawal of the trade restrictions with enthusiasm, the courses increased massively. With the introduction of the tariffs, the president had triggered the descent in the first place. Most recently, it became apparent that investors could sell US state bonds – a worrying development for the future of American state finances. Market observers guess that this could have brought about the customs break.
Was pressure on Trump exerted?
As the reason for his surprising change, the president himself said that “people” had become a bit restless and “a bit anxious”. However, Trump’s nervousness could also have played a role after the US government had emphasized for days that the tariffs were nothing that could be tilted or negotiated within days or weeks.
The US trade expert Laura from Daniels from the Science and Politics Foundation says that Trump had received great pressure from the financial markets, but also from individual entrepreneurs. Börsen courses are something that the Republican pursues particularly carefully and what moves him.
Crucial insider tip from the President?
The stock markets reacted with a significant upswing to the withdrawal of the tariffs. The market, measured by the S&P 500 stock index, which comprises the stocks of 500 leading listed US companies, won around four trillion dollars or 70 percent of the value that he had lost in the previous four trading days. Trump’s comment: “It was said that it was the biggest day in financial history.”
But there is also criticism of Trump’s course swing – and the accusation of insider trade is in the room. Shortly before Trump made his course turn public, he made a financial tip on social media: “This is a great time to buy !!! DJT,” he wrote on Wednesday morning (local time) on his Truth Social platform. Less than four hours later, Trump took back part of the tariffs he previously imposed.
Trump-related stocks with enormous growth
DJT – Trump’s initials – is also the share symbol of the Trump Media and Technology Group, the parent company of the social media platform Truth Social. After the announcement, the company completed an increase of 22.67 percent. Trump’s 53 percent participation in the company, which is now held by a trust under the control of his eldest son Donald Trump Jr., rose by $ 415 million that day.
The course jump at Trump Media was exceeded by the Tesla share by government advisor Elon Musk. Tesla’s price increase by almost 23 percent on Wednesday increased Musk’s assets by $ 20 billion. A few days ago, Commerce Minister Howard Lutnick had called for citizens to buy Tesla shares live on television because they would never be cheaper again.
“Can manipulate the market effectively and unpunished”
Several Democrats from the US Congress consider all of this to be a broken game. The Democratic Senator Adam Schiff wrote on platform X, Trumps back and forth in the tariffs and the market fluctuations provided “dangerous options for insider trade”. Schiff asked: “Who in the government knew in advance of Trump’s recent course change in the tariffs? Has anyone bought or sold shares and benefited from the public at the public?” Other democrats also asked for this.
Trump sends “the message that he can manipulate the market effectively and unpunished,” said Kathleen Clark, an expert in government ethics at Washington University School of Law.
“He loves this control over the markets, but it should be better careful,” said the Trump critic and former ethics lawyer of the White House, Richard Painter, and pointed out that securities law prohibits insider information. “The people who bought when they saw this message made a lot of money.”
