TACO Trump
Investors Say ‘Trump Always Chickens Out’ on Tariffs
A new term called TACO Trump is catching attention on Wall Street. It was first used by journalist Robert Armstrong from the Financial Times. The term stands for "Trump Always Chickens Out" and is used to describe how former President Donald Trump often backs away from harsh tariff threats after markets react negatively. This pattern has become common during his trade talks with countries like China and those in Europe.
Every time Mr. Trump announces high tariffs, stock markets usually drop sharply. But not long after, he tends to ease up on those tariffs, which then causes the markets to bounce back. For example, in May, Trump first announced steep tariffs on Chinese and European goods. However, a few days later, he delayed or paused those tariffs, and the stock market quickly recovered.
Analyst Adam Crisafulli pointed out that this pattern has made investors less worried. They’ve started to believe that Trump’s big threats are just part of his negotiation style, and that he doesn’t follow through with harsh actions. This idea is the heart of the TACO Trump theory — he talks tough, but backs down when things get tough for the economy.
Trump Always Chickens Out: This feckless fuckwad is forever going to be known as "TACO Trump," the moron who Wall Street secretly laughs at. Trump, like all bullies, is actually a wimp who oozes insecurity. Watch Trump's reaction to a reporter's benign question. #TACO 😂🤣😂🤣👇 pic.twitter.com/JbkdRsNMfD
— Bill Madden (@maddenifico) May 28, 2025
When a reporter asked Trump about the TACO label, he wasn’t pleased. He called it a “nasty question” and defended his actions, saying it was all part of a negotiation tactic. Trump claimed his tariff threats brought trade partners to the table and denied that he was backing down out of fear.
Despite Trump's defense, some experts warn that markets might be too relaxed. Companies like Walmart have said that if tariffs go up, they’ll have to raise prices. Also, the U.S. has been showing signs of financial stress, with Moody’s even downgrading the country’s credit rating earlier this month.
For now, investors seem to accept the TACO Trump pattern. They expect big threats followed by pullbacks, which keeps the markets steady — at least until July, when some of these delayed tariffs could actually kick in. Whether this strategy is smart negotiation or empty threats, the nickname TACO Trump might stick as a symbol of how Wall Street sees his trade tactics.
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