Letitia James Targets Trump Allies Over Market Surge After Tariff Pause — Questions Swirl Around Insider Trading Allegations
NEW YORK, April 16, 2025 — In a development critics are already calling politically motivated, New York Attorney General Letitia James has launched a preliminary inquiry into potential insider trading linked to last week’s market-shaking 90-day tariff pause announced by President Donald J. Trump.
According to CNN, James is examining whether any Trump administration officials or close associates benefited financially from early knowledge of the dramatic shift in U.S. trade policy, particularly given the record-breaking stock market rally that followed Trump’s sudden pivot.
However, the legal basis for this inquiry is raising eyebrows.
Trump’s Market-Calming Message: “THIS IS A GREAT TIME TO BUY”
The controversy stems from a series of Truth Social posts by President Trump on the morning of April 9, following rising market fears over his newly announced 125% tariffs on China.
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”
“THIS IS A GREAT TIME TO BUY!!! DJT”
Just hours later, the White House released formal details of a 90-day pause on tariff enforcement and reciprocal reductions for over 75 nations, leading to a stunning market recovery.
Wall Street Surges: Billions in Gains
- Dow Jones: +2,861 points (+7.4%)
- Nasdaq: +11.7% — biggest one-day jump in decades
- S&P 500: +9.1% — largest gain in five years
CNBC reported that billions in value were added to U.S. markets within hours, triggering major institutional and retail trades.
Insider Trading or Public Disclosure?
Legal analysts are questioning how public posts by the president, accessible to tens of millions, could form the basis of an insider trading inquiry.
“Unless the administration leaked confidential economic policy information before the posts, there’s no credible case,” one former SEC enforcement attorney told The Wall Street Ledger. “A Truth Social post isn’t a confidential memo—it’s more like a bullhorn.”
Still, Letitia James’ office confirmed to CNN that it is “reviewing trading activity” surrounding the tariff announcement, including “any anomalous trades made in advance of the formal policy shift.”
Political Overtones and Timing
This latest action follows Senator Adam Schiff’s move to block Trump’s US Attorney nominee, and now places another prominent Democrat directly at odds with the administration. Critics argue that James—who previously led the Trump Organization civil fraud case—has a history of pursuing politically sensitive legal crusades.
“This is just the latest fishing expedition by a Democrat AG desperate to stay relevant,” said one senior Trump campaign official. “They’re trying to criminalize good economic news.”
The White House declined to comment on the inquiry but referred reporters to President Trump’s recent comments on Truth Social, reiterating that “smart investors know opportunity when they see it.”
Bottom Line
Letitia James’ inquiry remains in its early stages, but it signals a new front in the Democrats’ escalating legal war on the Trump White House. Whether anything concrete emerges from the allegations, the political fallout is already underway.
And as Trump’s economy continues to surge, it appears even good news won’t escape the courtroom.