US Congressional stock trades spike during Trump’s tariff turmoil, reigniting calls for trading ban

Congress has debated stock-trading bans since 2012, when lawmakers passed a law prohibiting trading on insider information

As US financial markets plunged in early April following President Trump’s sweeping “Liberation Day” tariffs, members of Congress and their families executed a flurry of stock trades—more than 700 transactions in a single week—raising fresh concerns about lawmakers’ ability to profit from market-moving events, the Wall Street Journal reported.

Between April 2, when Trump imposed the tariffs, and April 8, the day before he paused many of them, more than a dozen House lawmakers and their relatives made trades involving stocks such as MKS Instruments, JPMorgan Chase, Honeywell International and Visa, according to a Wall Street Journal analysis of federal disclosures. The period marked one of the most volatile stretches for global markets in a decade, with the S&P 500 recording its steepest two-day fall since the pandemic crash of March 2020.

Trading frenzy during market turmoil

The stock rout, which erased more than $6 trillion in value, triggered a sharp rise in trading across Wall Street and Congress alike. House members and their families logged more trades in April than any other month in the past year, with trading activity on the New York Stock Exchange and Nasdaq hitting record levels dating back to 2007.

Leading the pack of congressional traders were Reps. Ro Khanna (D., Calif.) and Rob Bresnahan (R., Pa.), both of whom have previously called for banning stock trading by members of Congress. Other prolific traders included Reps. Jefferson Shreve (R., Ind.), Julie Johnson (D., Texas), and Michael McCaul (R., Texas). While most lawmakers disclosed that their trades were executed by outside financial advisers, the timing of the activity has fueled bipartisan efforts to impose stricter limits on congressional stock trading.

“This whole episode is a reminder that the opportunity for insider trading by members of Congress is very real, very toxic and needs to be eliminated,” said Rep. Seth Magaziner (D., R.I.), who is helping lead negotiations on a new bipartisan stock-trading ban.

Winners, losers, and risky bets

The rapid market rebound that followed Trump’s 90-day tariff pause further complicated the picture. While disclosures do not reveal whether lawmakers profited overall, some trading patterns stood out. Rep. Marjorie Taylor Greene (R., Ga.) purchased stocks such as Amazon and FedEx during the downturn, positioning herself to benefit from the rebound. Similarly, Rep. Jared Moskowitz (D., Fla.) made multiple stock purchases just days before markets surged.

Others, like Rep. Julie Johnson, appeared to miss the rally. She sold 56 stocks just before Trump’s rollback announcement—53 of which later rose in value.

Some lawmakers engaged in particularly high-risk trades. Rep. Josh Gottheimer (D., N.J.), a former Microsoft executive, bought call options tied to Microsoft stock on April 4, during the tariff-driven selloff. Those options have since roughly doubled in value, according to market data.

Renewed push for stock-trading restrictions

Congress has debated stock-trading bans since 2012, when lawmakers passed a law prohibiting trading on insider information. The latest tariff-induced market swing has revived momentum for further reforms. A bipartisan group—including Reps. Alexandria Ocasio-Cortez (D., N.Y.), Chip Roy (R., Texas), and Magaziner—is working on a new bill that would ban lawmakers and their families from trading individual stocks, instead requiring them to use mutual funds or blind trusts.

Several lawmakers cited in the Journal analysis said they were already moving their assets into blind trusts or managed portfolios. But with public scrutiny mounting, advocates say a clear, enforceable trading ban is overdue.

As Magaziner put it, “The American people deserve to know that their elected officials are working for them, not their own stock portfolios.”