Disclosure records filed by Duffy with the U.S. Office of Government Ethics show he sold between $75,000 and $600,000 of stock two days before Trump’s Feb. 13 announcement, and up to $50,000 more that day.
Transportation secretaries normally have little to do with tariff policy, but Duffy has presented himself as one of the intellectual forefathers of Trump’s current trade agenda. As a congressman in 2019, his last government position before Trump elevated him to his cabinet post, Duffy introduced a bill he named the “United States Reciprocal Trade Act.”
The proposed legislation, which did not pass, in many ways mirrors Trump’s reciprocal tariff plan. Duffy worked on that bill with Trump’s trade adviser Peter Navarro. Trump’s tariffs were “the culmination of that work,” Duffy posted online, referring to his own bill in the House.
Trades by government officials informed by nonpublic information learned in the course of their official duties could violate the law. However, it’s unclear whether Duffy had any information about the timing or scale of Trump’s reciprocal tariff plans before the public did.
Trump had repeatedly promised to institute significant tariffs throughout the campaign. But during the first weeks of his term, investors were not panic selling, seeming to assume Trump wouldn’t adopt the far-reaching levies that led to the market crash following his “Liberation Day” announcement.
In response to questions from ProPublica, a Transportation Department spokesperson said an outside manager made the trades and Duffy “had no input on the timing of the sales” — a defense that ethics experts generally consider one of the strongest against questions of trading on nonpublic information.
His stock transactions “are part of a retirement account and not managed directly by the Secretary. The account managers must follow the guidance of the ethics agreement and they have done so.”
“The Secretary strongly supports the President’s tariff policy, but he isn’t part of the administration’s decisions on tariff levels,” the spokesperson said.
The spokesperson dismissed the notion that knowledge of Trump’s coming tariffs could constitute insider knowledge because “President Trump has been discussing tariffs since the 1980s.”
Duffy is the second cabinet secretary to have sold stock at an opportune time.
Last week, ProPublica reported that Attorney General Pam Bondi sold between $1 million and $5 million worth of shares of Trump Media, the president’s social media company, on April 2. A government ethics agreement required Bondi to sell the shares within 90 days of her confirmation, a deadline that would have given her until early May, but why she sold on that date is unclear. After the market closed that day, Trump presented his tariffs, sending the market reeling.
Following ProPublica’s story, at least two Democratic members of Congress called for investigations. Bondi has yet to answer questions about whether she knew anything about Trump’s tariff plans before the public did. The Justice Department has not responded to questions about the trades.
Disclosure forms for securities trading by government officials do not require them to state the exact amount bought or sold but instead to provide a broad range for the totals of each transaction.
Duffy's disclosure records show he sold 34 stocks worth between $90,000 and $650,000 on Feb. 11 and Feb. 13. Per the ethics agreement he signed to avoid conflicts of interest as head of the Transportation Department, he was required to sell off stock in seven of those companies during his first three months in office. Cabinet members are typically required to divest themselves of financial interests that intersect with their department’s oversight role, which in Duffy’s case involve U.S. roadways, aviation and the rest of the nation’s transportation network. The ethics agreement was dated Jan. 13, and Duffy was confirmed by the senate on Jan. 28, meaning he had until late April to sell. His spokesperson said he provided his account manager with the ethics agreement on Feb. 7.
The stocks he sold in the other 27 companies were not subject to the ethics agreement. Those shares were valued somewhere between $27,000 and $405,000, according to the records. Among them were Shopify, whose merchants are impacted by the tariffs, and John Deere, the agricultural machinery manufacturer that has projected hundreds of millions of dollars in new costs because of Trump’s tariffs.
Other companies Duffy sold, like gambling firm DraftKings and food delivery service DoorDash, are less directly vulnerable to tariff disruptions. But even those companies will be impacted if Americans have less disposable cash to spend. Few stocks were not hit hard by Trump’s “Liberation Day” tariff announcements. The S&P 500, a broadbased index, fell almost 19% in the weeks that followed Duffy’s sales and 13% specifically after Trump unveiled the details of his reciprocal tariff plan. Since Trump unexpectedly walked back much of those initial tariffs, the market has rebounded.
There’s no indication that the cash from Duffy’s sales was immediately reinvested. He appears to have held on to parts of his portfolio, including a Bitcoin fund, treasuries, S&P 500 funds and stock in Madrigal Pharmaceuticals, an American biopharma company. (Duffy also purchased some Microsoft shares, one of the stocks he’s prohibited from holding, days earlier on Feb. 7, only to sell them on Feb. 11 with the rest of his sales.)
Trades by government officials informed by nonpublic information learned through their jobs could violate the Stop Trading on Congressional Knowledge, or STOCK, Act. The 2012 law clarified that executive and legislative branch employees cannot use nonpublic government information to trade stock and requires them to promptly disclose their trades.
But no cases have ever been brought under the law, and some legal experts have doubts it would hold up to scrutiny from the courts, which in recent years have generally narrowed what constitutes illegal insider trading. Current and former officials have also raised concerns that Trump’s Justice Department and Securities and Exchange Commission would not aggressively investigate activities by Trump or his allies.
The president’s selection of Duffy to lead the Department of Transportation was somewhat unexpected. Duffy, who came to fame when he starred in the reality show “The Real World” in the late 1990s, had last held public office in 2019 during Trump’s first term when he served as a Wisconsin congressman.
As a lawmaker, Duffy introduced the bill that would have made it easier for Trump, or any president, to levy new tariffs, a role that had long been largely reserved for Congress. The bill would have allowed the president to impose additional tariffs on imported goods if he determined that another country was applying a higher duty rate on the same goods when they were coming from America.
The bill did not pass, but Trump has essentially assumed that power by justifying new tariffs as essential to national security or in response to a national emergency. His Feb. 13 announcement called on his advisers to come up with new tariff rates on goods coming from countries around the world based on a number of restrictions he said those countries were placing on American products — not just through tariffs, but also with their exchange rates and industry subsidies.
Even the public rollout of Duffy’s bill and Trump’s tariffs were similar. Duffy released a spreadsheet showing how other countries tariffed particular goods at a higher rate than the U.S. Trump also used a spreadsheet during his rollout to show that his new tariffs were the same or lower than the trade restrictions other countries had placed on American goods.
More recently, Duffy has been a booster of Trump’s trade policies.
“LIBERATION DAY!!🇺🇸🇺🇸We’re not gonna take it anymore!💪🏻💪🏻💪🏻,” he tweeted two days after Trump unveiled his reciprocal tariffs on April 2. “This week, @POTUS took a historic step towards stopping other countries from ripping off the American worker and restoring Fair Trade. In Congress, I helped lead the US Reciprocal Trade Act with @RealPNavarro and the @WhiteHouse to expand the President’s tariff powers in his first term. I am so proud to have been able to share the culmination of that work, Liberation Day, with my family this week. Thank you at POTUS!”
