US EditionTeam TACO cashes in as Trump folds again
Trump's tariff retreat and Greenland withdrawal triggered a volatile market week with S&P 500 dropping over 2% before a late rally recovered half the losses, investors say.
- On Wednesday, President Donald Trump backed down and retracted his tariff ultimatum, abandoning Greenland ambitions, triggering a late New York session rally with a near 600-point surge in the Dow Jones Industrial Average.
- After a Sunday escalation involving Greenland and tariffs, President Donald Trump threatened to annex Greenland and impose tariffs, but European leaders including French President Emmanuel Macron pushed back ahead of diplomatic meetings in Switzerland.
- Volatility measures spiked as investors rushed to safe havens, with the S&P 500 falling 2.1%, the VIX jumping, gold hitting record highs, and the U.S. dollar weakening, wiping out 2026 gains.
- For investors who saw through the bluff, Team TACO and smart money earned sizable gains on Tuesday, while panicked retail investors were financially stung when markets recovered.
- With Europe holding $8 trillion of U.S. bonds and equities, analysts warn that TACO's protection may weaken as European policymakers prepare trade responses.
11 Articles
11 Articles
The American president changes his tone when a few Europeans – Emmanuel Macron in the lead – hit the torso about Greenland. But wouldn't this sudden "courtesy" come from elsewhere? From the pressure of financial markets for example?
Did markets’ ‘Sell America’ trade force Trump to TACO on Greenland?
President Donald Trump threatened a massive new trade war against Europe in his bid to acquire Greenland. And the financial markets immediately tanked. Then on Wednesday, he backed down.Trump dropped his tariff threats after meeting with European leaders in Switzerland, said CNN. NATO leaders agreed to a “framework of a future deal” on Greenland, Trump said on Truth Social. “I think it puts everybody in a very good position,” he told reporters. …
After calling off the trade war with Europe, Donald Trump is being mocked and called "TACO" Trump. Understand why here.
Dollar Played Out TACO Trade - ActionForex
The US dollar got the upper hand after Donald Trump’s speech in Davos. The US president announced that there was some framework for a deal on Greenland and that he was abandoning his intention to impose additional tariffs on a number of European countries. The markets immediately switched from ‘sell America’ to TACO-trade or Trump-Always-Chickens-Out mode. Stock indices rose, Treasury yields fell, while EURUSD bears went on the counterattack.
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