CALIFORNIA – California Attorney General Rob Bonta issued a statement, April 10, that his office is ‘monitoring the situation’ in reference to concerns of the Trump Administration and associates engaging in insider trading after pausing his tariff policy.
He added that he expects the appropriate agencies to investigate potential insider trading.
Insider trading is the illegal use of non-public information to buy or sell securities, gaining an unfair advantage.
“The President’s actions and potential profit by associates from the chaos and turmoil that cost Americans trillions of dollars is deeply troubling,” said Bonta.
On April 9, President Donald Trump announced a 90-day pause on all “reciprocal” tariffs except those imposed on China, which will see tariffs increased to at least 125%.
“The bond market is very tricky. I was watching it…I saw last night where people were getting a little queasy,” said Trump.
Following the reversal of his policy, the stock market rebounded after the S&P 500 lost $5.83 trillion in value. The market recorded a 9.5% single day gain – the largest since 2008.
Bonta stated that California consumers and businesses are concerned during this period of uncertainty, emphasizing that as the world’s fifth-largest economy, California recognizes that global trade policy is not a game.
Tesla stock went up 18% after tariff pause
California Senator Adam Schiff and Arizona Senator Ruben Gallego are also concerned about the sequence of events that they say raises grave legal and ethics questions.
The Democratic lawmakers urged the White House and the Office of Government Ethics (OGE) to investigate whether Trump or his family used non-public information about his tariff policy changes for insider trading.
The senators noted that stock in Tesla, owned by special government employee Elon Musk, rose 18% immediately after Trump’s announcement to pause most tariffs.
They asked the OGE to review if any White House employees violated federal ethics laws with stock trades before the April 9 announcement.
According to the Trump Administration, ‘tariffs are necessary to ensure fair trade, protect American workers, and reduce the trade deficit.’
