Trump, TACO

#Trump

#TACO

Here’s the lowdown on TACO — “Trump Always Chickens Out”:

What it is

Origin: Coined by Financial Times columnist Robert Armstrong on May 2, 2025, to describe Trump’s pattern of threatening steep tariffs then delaying or reversing them as markets panicked .

Meaning: Markets learned that behind bold tariff rhetoric lies a tendency to yield — leading to the acronym T-A-C-O as shorthand .

How it plays out

Market reaction: Stocks plunge on tariff news, only to recover once delays or reversals occur — the textbook “TACO trade” .

• Notable episodes:

• April “Liberation Day” tariffs announced then immediately shelved — markets surged .

• June delay of EU tariffs until July 9 triggered a rebound .

• Latest July delay to August 1 also calmed nerves

Recent developments

• On July 8, Trump delayed global tariffs again from July 9 to August 1 — investors shrugged it off thanks to “TACO trade” expectations .

• Financial Times warns that if Trump actually follows through with hefty 50–200% tariffs (like on pharmaceuticals), the “TACO” safety net might erode .

• The Atlantic Court, the U.S. Court of International Trade, ruled against his “Liberation Day” tariffs on May 28, citing overreach under IEEPA .

Cultural ripple effects

• Big time meme energy: internet exploded with tacos featuring Trump’s face and chickens on his head .

• Trump didn’t love it — he called a reporter’s reference to “chickening out” a “nasty question” .

Summary

TACO is shorthand for Trump’s playbook — big tariff threats followed by retreats when pressure mounts.

Markets have learned to anticipate this pattern and often price accordingly. But analysts caution: if Trump ever abandons the backtrack, TACO could suddenly trigger volatility instead of relief.

#TrumpAlwaysChickensOut