‘This is pure market manipulation’: Matthew Caruana raises red flag over Trump’s tariff talk

CEO Matthew Caruana did not mince his words when he took to Facebook earlier this week, calling out what he described as “pure market manipulation and speculation” in reaction to a sudden policy statement and reversal by former US President Donald Trump.

In follow-up comments to MaltaCEOs.mt, Mr Caruana expanded on his concerns, warning that such erratic behaviour from powerful figures can have serious consequences for financial markets – and may even border on illegal activity.

“Market manipulation refers to actions intended to artificially influence asset prices for personal or political gain,” Mr Caruana explained. In the case of Mr Trump, he said, there has been a recognisable “pattern of statements – whether about tariffs, interest rates, or specific companies – that have caused major market movements.”

Talks of stock market manipulation have been making the rounds these last few hours on social media, as Mr Trump was filmed bragging about how much money his friends made.

Mr Caruana pointed out that floating a significant policy shift and then backtracking on it within 24 hours introduces considerable volatility. “Anyone who knows this in advance – that he planned to make a statement likely to move markets – and they acted on that knowledge, that would cross into the realm of manipulation or insider trading.”

Asked who would be responsible for looking into such behaviour, Mr Caruana said that in the United States, the primary watchdogs would be the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Both bodies are tasked with monitoring and enforcing fair trading practices in financial markets.

While his critique focused on Mr Trump’s conduct, Mr Caruana stressed that the issue goes beyond one individual. “Mr Trump’s deeply entrenched business interests and his past behaviour raise legitimate concerns about conflicts of interest,” he said. “When decisions seem to be taken on a whim and then changed again, it shows that either they do not know what they are doing or else they are doing it for ulterior motives.”

Mr Caruana said he believes there is “certainly” a possibility that people close to Mr Trump, if not Mr Trump himself, could have had early visibility of these decisions. If so, that information could have been used for “strategic trades ahead of time,” amounting to classic insider trading. “The key issue is access and timing: Even a few minutes’ notice in volatile markets can mean massive gains.”

In his view, this situation underscores the need for strong transparency and accountability, particularly when political and business interests become entangled. “This is precisely why robust transparency and accountability mechanisms are essential when business and politics intersect so closely,” he said.

Mr Caruana also emphasised the importance of financial literacy, not just for investors, but for the general public. He believes people should be better equipped to navigate and interpret political statements that could impact economic policy. “The public needs to be educated to handle these shocks and to understand that what he is saying is not the truth,” he said, citing Mr Trump’s confusion between tariffs and trade deficits as a recent example.

With global markets increasingly susceptible to sudden shocks caused by public figures, Mr Caruana’s remarks serve as a timely reminder of the delicate balance between political rhetoric and financial stability – and the dangers of blurring the lines between the two.