Wall Street Coines 'TACO' Code Mocking Trump’s Tariff Reversals

Wall Street investors have coined the term "TACO," an acronym for "Trump Always Chickens Out," to describe President Donald Trump's pattern of announcing steep tariffs that cause market declines, only to reverse or delay them shortly after, prompting market rebounds. This phenomenon has led to a trading strategy where investors anticipate Trump's tariff announcements will not be fully enforced, allowing them to buy stocks during downturns and profit when markets recover. The term originated with Financial Times columnist Robert Armstrong and has gained traction among traders and economists who view it as unprecedented market behavior, reflecting a decline in Trump's perceived credibility on trade policy. University of Michigan economist Justin Wolfers highlighted that unlike previous presidents, Trump's statements no longer guarantee consistent follow-through, creating market volatility and uncertainty. The most recent example involved Trump's delayed implementation of 50% tariffs on European imports, which initially caused market drops but then led to gains after the delay was announced. This dynamic underscores a unique and volatile era in market responses to presidential policy announcements.