Overview

• The acronym “TACO” (Trump Always Chickens Out), coined by Financial Times columnist Robert Armstrong, has become Wall Street shorthand for the president’s cycle of high tariff threats followed by retreats.
• A federal court invalidated the so-called “Liberation Day” tariffs under the International Emergency Economic Powers Act, and an appeals court has paused its order pending further briefing through June 9.
• Market volatility has softened as traders buy on Trump’s tariff announcements and sell only if levies stick, reflecting confidence that he will ultimately relent.
• Trump has forcefully rejected the “TACO” label in Oval Office exchanges, insisting his steep initial rates are strategic negotiation tactics rather than concessions.
• Armstrong and ex-aide Alyssa Farah Griffin warn that the nickname’s widespread use could prompt Trump to abandon his retreats, risking prolonged trade standoffs and renewed market turbulence.