Longtime Trump-foe Letitia James reviewing possible insider trading over president’s tariff pause,

New York Attorney General Letitia James is currently in the initial stages of examining whether President Donald Trump’s recent pause on reciprocal tariffs may have involved insider trading violations. This investigation comes as a result of suspicions that Trump or individuals close to him may have had prior knowledge of a tariff decision that led to a surge in the stock markets.

The reciprocal tariffs implemented by Trump, which targeted nations with a history of imposing trade barriers on U.S. goods, went into effect on April 9. Prior to announcing a 90-day pause on these tariffs, Trump took to social media platform Truth Social to assure his followers that everything would work out well and encouraged them to buy. This unexpected announcement caused a significant increase in the U.S. markets, with the DOW rising 7.9%, the S&P 500 increasing by 9.5%, and the Nasdaq jumping 12.2% on the same day.

The sudden nature of Trump’s tariff pause has raised concerns among lawmakers, with some suggesting the possibility of insider trading. Senator Elizabeth Warren has called for an investigation by the Securities and Exchange Commission to ensure that Trump and his associates did not have access to privileged information that allowed them to profit from the tariff decision.

In response to these allegations, the White House dismissed the accusations of insider trading as partisan games played by Democrats. White House spokesman Kush Desai emphasized that it was the President’s responsibility to provide reassurance to the markets and the American people in the face of media fearmongering.

Letitia James, a long-time political opponent of Trump, has been vocal about her intention to hold him accountable for any legal violations. Since taking office in 2018, James has pursued numerous legal challenges against Trump, vowing to defend the rights of New Yorkers and uphold the rule of law. Under the Martin Act of 1921, the New York attorney general has the authority to investigate securities fraud, including issuing subpoenas, demanding documents, and bringing civil or criminal cases without the need to prove intent to defraud.

As the investigation into possible insider trading related to Trump’s tariff announcement unfolds, it remains to be seen whether any evidence of wrongdoing will be uncovered. The outcome of this probe could have significant implications for both Trump and his associates, as well as for the broader financial markets.