WASHINGTON: US President Donald Trump is facing mounting allegations of market manipulation after his administration unexpectedly paused new tariffs just a day after announcing sweeping trade duties — a reversal that sent global markets soaring.
The abrupt move, framed by the White House as a “strategic recalibration,” caught investors off guard and sparked a surge across global indices. But critics, including Democratic Senator Elizabeth Warren, say the timing raises serious ethical questions.
“This smells like corruption,” Warren wrote on X (formerly Twitter), alleging that the volatility generated by Trump’s trade decisions could benefit politically connected insiders at the expense of ordinary Americans. She has called for a formal probe into whether tariff policy is being used to engineer short-term market gains.
The administration had initially imposed steep new tariffs targeting multiple trade partners, only to roll back most of them hours later — with China being a notable exception. Tariffs on Chinese imports remain at 125%, keeping tensions with Beijing on a simmer.
While the reversal briefly boosted investor confidence and strengthened the US dollar, analysts remain divided. Some interpret the move as a necessary gesture to reduce trade friction. Others see it as another instance of erratic economic policymaking.
“Markets don’t like uncertainty,” said Sarah Lin of the Global Markets Institute. “This kind of inconsistency leaves businesses in limbo and raises doubts about the administration’s long-term strategy.”
The White House has yet to respond to Warren’s accusations. Trump, however, has repeatedly defended his tariff tactics as a means to safeguard American jobs and industries.
With a 90-day pause now in effect for most tariffs — except those on China — Wall Street and Washington alike are bracing for more volatility as the 2024 campaign season heats up.
