Duffy profits from stock sales just before Trump’s tariff plan unveiled

In February 2019, during a time of significant market volatility in the United States, Transportation Secretary Sean Duffy executed a series of stock sales. The sales occurred two days before President Donald Trump announced a new plan for reciprocal tariffs on foreign imports, which subsequently sent the stock market into decline. Duffy sold stock in nearly three dozen companies, worth between $75,000 and $600,000. The announcement led to a market slide, prompting concerns among investors as tariffs came into effect. Duffy had previously introduced a bill that sought to simplify the process for such tariffs, raising questions about potential insider trading. An account manager handled the trades for Duffy, who stated he had no control over the timing of these stock sales. Critics argue that he may have had access to nonpublic information regarding Trump's tariff plans, potentially influencing his decision to sell at such a strategic moment. The sales occurred at a time when the stock market was peaking, and Duffy was under pressure to comply with an ethics agreement that required him to divest from certain holdings shortly after taking office. The fallout from these tariff announcements contributed to significant losses for many investors and heightened scrutiny on Duffy’s actions. A spokesperson pointed to the long history of discussions about tariffs by President Trump as a reason for why knowledge of the incoming tariffs should not be considered insider information. Nevertheless, this situation has underscored the delicate relationship between government officials and the stock market, especially when it involves decisions that can markedly influence economic landscapes. Since then, the cryptocurrency industry has closely monitored Trump's stance on this issue. The ties between political leaders and the crypto sector have become increasingly evident, particularly as events unfold regarding Duffy's prior support for legislation that resonates with Trump's agenda. The perception of Duffy as merely executing orders as a Cabinet member is challenged when viewed through the lens of his previous legislative efforts, which some see as fortuitous in context with his conduct during his role at the Department of Transportation.