US EditionWall Street's 'TACO Trade' Powers Stock Rally as Trump Defers Tariff Threats
- President Donald Trump announced on June 1, 2025, a 50% tariff on goods from the European Union, later postponed to July 9 to allow negotiations.
- This tariff action followed Trump's pattern of imposing steep levies then retreating, a strategy that led to the 'TACO trade' market phenomenon poking fun at his repeated withdrawals.
- Investors widely adopted the 'TACO' acronym, meaning 'Trump Always Chickens Out,' which describes market rallies after Trump backs down from tariff threats amid ongoing trade deficit battles.
- Trump defended his tactic, saying he sets a 'ridiculous high number' then negotiates down, and emphasized that without his tariffs the EU would not negotiate.
- The tariff delays and policy shifts have fueled market volatility but also enabled rallies, suggesting a delicate balance between negotiation tactics and economic impact.
235 Articles
235 Articles
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