Donald Trump’s inconsistent tariff policies have drawn criticism and mockery from Wall Street, with financial experts coining the term “TACO Trade” to describe his tendency to threaten tariffs and then back down. The acronym stands for “Trump Always Chickens Out.”
Since taking office for his second term, Trump has threatened tariffs on various countries and products, but has often delayed or retracted these threats. For example, he recently threatened a 50% tariff on goods from the European Union, but delayed it after discussions with E.U. Commission President Ursula von der Leyen.
Trump also announced a 200% tariff on wine imported from the E.U. in response to a threatened tariff on American whiskey, but this tit-for-tat over alcohol never materialized. Early in his term, he imposed a 25% tariff on goods from Canada and Mexico, but paused the tariffs multiple times before excluding them from broader tariffs. Other instances of Trump’s tariff threats include a 100% tariff on foreign-produced movies, which he quickly retracted, and a variety of tariffs on almost every country that he later paused to negotiate individual trade deals.
Wall Street’s tariff mockery
His tariffs on China reached over 145%, causing businesses to halt shipments, but he later reduced them to 10% for trade discussions. Trump’s unpredictable trade policies have contributed to economic instability and global tension.
During a segment on “Deadline: White House,” host Nicolle Wallace discussed the recent mockery from Wall Street, emphasizing that Trump’s actions are contributing to his own political setbacks. Financial commentators Robert Armstrong and Charlotte Howard joined Wallace to share their reactions and delve into the implications of Trump’s trade policies. They agreed that the term “TACO Trade” encapsulates the frustration and mockery from Wall Street towards Trump’s erratic strategies.
Wallace concluded the segment by noting that while Wall Street and the courts continue to respond to Trump’s policies and actions, it is ultimately Trump himself who is responsible for the political and economic turmoil associated with his legacy.
