US EditionWall Street's 'TACO Trade' Powers Stock Rally as Trump Defers Tariff Threats
- Wall Street traders adopted the 'TACO trade' strategy in May 2025 to profit from President Trump's fluctuating tariff policies on China and the European Union.
- This strategy arose because Trump initially imposed high tariffs—145% on Chinese goods and a threatened 50% on EU imports starting June 1—but then repeatedly delayed or reduced them to enable negotiations.
- The acronym 'TACO,' meaning 'Trump Always Chickens Out,' was coined by Financial Times commentator Robert Armstrong and gained widespread use among analysts to describe the pattern of tariff threats followed by policy pullbacks.
- After Trump postponed the EU tariffs to July 9 and lowered China tariffs to 30%, markets quickly recovered, prompting Chris Beauchamp, IG International's chief analyst, to say, 'Taco trade triumphs once again.'
- The pattern suggests investors expect Trump’s trade threats to cause temporary market drops but then anticipate rebounds when he eases policies, though analysts warn this tactic may lose effectiveness over time.
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CNN Host Claims Trump is ‘Clearly Rattled’ By TACO Nickname
Donald Trump is “clearly rattled” after being confronted with the his new “TACO” nickname during a press conference earlier this week, says CNN’s Erin Burnett. The president had a meltdown on Wednesday after being made aware of the acronym, which stands for “Trump Always Chickens Out.” The term was coined by Wall Street traders due to his habit of repeatedly backing down from his threats. “That’s a nasty question,” he said in response to the rep…
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Leaning Left63Leaning Right28Center50Last UpdatedBias Distribution45% Left
Bias Distribution
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45% Left
L 45%
C 35%
R 20%
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