Rep. Summer Lee, Colleagues Raise Concerns about Corruption Risks from Trump’s Chaotic Tariff Scheme
**For Immediate Release**
Rep. Summer Lee, Colleagues Raise Concerns about Corruption Risks from Trump’s Chaotic Tariff Scheme
Over 45 lawmakers sound alarms about possible illicit payments, influence-peddling, insider trading
WASHINGTON, D.C. – April 17, 2025 — Today, Congresswoman Summer Lee (PA-12) joined her Democratic colleagues in writing to Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and U.S. Trade Representative (USTR) Jamieson Greer with concerns over the potential for corruption in the implementation of the administration’s tariff policy.
The letter was led by U.S. Senator Elizabeth Warren (D-MA), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, along with Representatives Linda Sánchez (D-CA), Ranking Member of the House Ways and Means Subcommittee on Trade, and Judy Chu (D-CA), and signed by 44 Members, including Rep. Lee.
The Trump administration’s tariffs rollout is rife with opportunities to unduly influence President Trump and other administration officials. The chaotic nature of the tariffs, including announcing them and pausing them shortly after they went into effect, provides ample opportunity for private sector corporations or sovereign nationals to corruptly seek exemptions.
“Corporations and sovereign nations facing existentially high stakes, and knowing tariffs are controlled by a small circle in the White House, can petition officials not to apply tariffs to them after the 90-day pause, to grant them exemptions, to decrease tariffs, or to impose tariffs on competitors — and can quietly offer something in return,” wrote the lawmakers.
President Trump’s record on tariffs in his first term illustrates his willingness to give preference to donors and allies while punishing enemies. Politically loyal companies that donated to Republican candidates, as well as companies with financial or political ties to President Trump, were more likely to be granted tariff exemptions after President Trump imposed them in his first administration. After auditing the Trump Administration’s tariff exclusion practices in 2018 and 2019, the Commerce Department’s Office of Inspector General found evidence of “off-record communications” and an “appearance of improper influence in decisionmaking for tariff exclusion requests.”
“We fear the Administration is once again turning its tariffs policy into an underground market of exemptions in exchange for financial and political favors,” said the lawmakers.
President Trump has said he will consider exemptions and make decisions “instinctively,” while bragging about global leaders calling him in search of exemptions.
Trump’s ad-hoc process has started to bear fruit for special interests. Last week, the White House exempted smartphones and certain other high-end electronics from tariffs targeting China. Within hours, Big Tech stock prices soared — particularly the value of Apple, which makes the vast majority of its iPhones in China. Apple CEO Tim Cook donated to President Trump’s inauguration and cultivated a strong relationship with him in recent months, as he did during Trump’s first term to win tariff exemptions.
The on-and-off nature of President Trump’s tariffs also opens the door to rampant insider trading. Administration officials — and their families and friends — with early knowledge of changes in tariff policy can buy positions they expect will rise and sell those that will fall. On April 9, 2025, minutes before the administration announced a pause on most tariffs, the trading market began to skyrocket — suggesting that insiders acted on non-public information about the coming pause. President Trump then posted on social media “THIS IS A GREAT TIME TO BUY!!!,” still before any official announcement, causing stocks to further spike.
Members of Congress, including Senator Warren, have asked the Securities and Exchange Commission (SEC) and ethics officials to investigate whether any securities laws were violated with this announcement.
At the same time, the top ethics watchdog who can hold the administration accountable appears poorly positioned to tackle tariff-related corruption. In late March 2025, USTR Ambassador Greer was named Acting Director of the Office of Government Ethics (OGE) and now serves in both roles simultaneously. Therefore, a top tariff policy official is responsible for ensuring that tariff policy decisions are made free of financial conflicts.
“This dual appointment raises blatant conflicts that risk undermining OGE’s ability to independently monitor trade officials’ conduct and recommend investigations into misconduct when necessary,” concluded the lawmakers.
The lawmakers asked the officials to provide clarity on the Trump administration’s exemption policy, if any official exemption request processes exist, where exemptions will be reported, whether an appeals process exists, the administration’s plans to ensure tariff exemptions are not corrupted, and more, by April 29, 2025.
Senators Bernie Sanders (I-Vt.) and Sheldon Whitehouse (D-R.I.) joined in signing the letter.
The following Representatives joined in signing the letter: Gabe Amo (D-R.I.), Becca Balint (D-Vt.), Julia Brownley (D-Calif.), Salud Carbajal (D-Calif.), Greg Casar (D-T.X.), Danny Davis (D-Ill.), Diana DeGette (D-Colo.), Maxine Dexter (D-Ore.), Lloyd Doggett (D-Texas), Dwight Evans (D-Pa.), Cleo Fields (D-La.), Bill Foster (D-Ill.), Robert Garcia (D-Calif.), Jimmy Gomez (D-Calif.), Al Green (D-Texas), Steven Horsford (D-Nev.), Jared Huffman (D-Calif.), Pramila Jayapal (D-Wash.), Sydney Kamlager-Dove (D-Calif.), Timothy Kennedy (D-N.Y.), John Larson (D-Conn.), Jim McGovern (D-Mass.), LaMonica McIver (D-N.J.), Gwen Moore (D-Wis.), Seth Moulton (D-Mass.), Jerry Nadler (D-N.Y.), Eleanor Holmes Norton (D-DC), Mark Pocan (D-Wis.), Ayanna Pressley (D-Mass.), Delia Ramirez (D-Ill.), Andrea Salinas (D-Ore.), Jan Schakowsky (D-Ill.), Terri Sewell (D-Ala.), Brad Sherman (D-Calif.), Lateefah Simon (D-Calif.), Mark Takano (D-Calif.), Shri Thanedar (D-Mich.), Dina Titus (D-Nev.), Rashida Tlaib (D-Mich.), Nydia Velázquez (D-NY), and Maxine Waters (D-Calif.).
A copy of the letter can be found here.
Congresswoman Summer Lee serves on the House Committee on Oversight and Government Reform and the Committee on Education and the Workforce. Since taking office in January 2023, she has delivered historic levels of federal investment totaling over $2.4 Billion brought back to Western PA, including over $580 million for infrastructure, over $110 million for affordable transit, over $500 million to keep clean energy manufacturing at home in Pennsylvania, and over $55 million on clean energy efforts in and around schools to help keep our kids and communities safe. These investments will help improve Western Pennsylvania’s infrastructure and transit, ensure cleaner air and drinking water, lower housing costs, fund research institutions, fuel clean manufacturing, fund STEM innovation and entrepreneurship, boost workforce development, and create thousands of good paying union jobs. Lee and her team have also delivered casework and constituent services to over 3,000 constituents with issues ranging from helping our seniors and disabled community access Medicare and social security to helping folks secure housing and helping families with immigration support and passports.