After the severe turmoil on the world stock markets, US President Donald Trump surprisingly decided to give a number of countries a 90-day reprieve from the higher tariffs he had imposed. He tightened them only for China.
The stock markets reacted very positively - share prices rose significantly. Observers suspect that Trump's decision to postpone the entry into force of the tariffs may be due to concerns that investors would start selling US government bonds, which would be very bad news for US public finances, writes the German public media ARD.
Was there pressure on Trump?
As a reason for the surprising U-turn, Trump himself indicated that people were "a little restless" and "a little worried". However, his own nervousness may also have played a role, after the US government had been repeating for days that the tariffs were not something that could be lifted or renegotiated within days or weeks.
American trade expert Laura von Daniels of the German "Science and Politics" Foundation believes that Trump was under strong pressure from financial markets, but also from individual entrepreneurs. Stock market prices are something that the Republican monitors particularly closely, ARD recalls.
Doubts of insider trading
Stock markets reacted to the postponement of the tariffs with a significant rise. "They say this is the greatest day in financial history", was Trump's reaction.
But his sharp turn in price has been sharply criticized: there are suspicions of insider trading. Shortly before announcing the tariff delay, the US president issued the following financial advice on his Truth Social platform: "This is a great time to buy!!!". The call was signed with Trump's initials DJT. Less than four hours later, Trump withdrew some of the tariffs he had imposed earlier.
Trump-related stocks record huge gains
Trump's initials DJT are also the stock symbol of Trump Media and Technology Group, the parent company of his social platform Truth Social. After the announcement, the company closed with a gain of 22.67%. Trump's 53% stake in the company, now held by a trust controlled by his eldest son Donald Trump Jr., rose by $415 million on the day.
Only Trump Media's Tesla shares, owned by Trump adviser Elon Musk, rose more: they jumped nearly 23%, increasing Musk's fortune by $20 billion in just one day. Just a few days ago, Commerce Secretary Howard Lutnick called on citizens on live television to buy Tesla shares because they will never be cheaper again.
"Can manipulate the market effectively and with impunity"
Democrats in the US Congress believe that all this is a set-up. Democratic Senator Adam Schiff wrote on the X platform that Trump’s tariff meandering and market volatility present “dangerous opportunities for insider trading.” Schiff asked, “Who in the government knew in advance about Trump’s impending tariff reversal? Did anyone buy or sell stocks and profit at the public’s expense?” Other Democrats also asked for clarification.
Trump “is sending a message that he can manipulate the market effectively and with impunity,” said Kathleen Clark, an expert on government ethics at the University of Washington School of Law.
“He loves this, this control over the markets. But he better be careful,” warned lawyer Richard Painter. He recalled that securities law prohibits insider trading. "People who bought after hearing the announcement made a lot of money", Painter also said, quoted by ARD.