Overview

• Financial Times columnist Robert Armstrong coined “TACO” in early May to describe President Trump’s pattern of announcing aggressive tariffs and then reversing course when markets fell.
• On June 2 at a White House event, Mr. Trump bristled at the “Trump Always Chickens Out” nickname, calling tariff rollbacks a matter of negotiation rather than retreat.
• The U.S. Court of International Trade ruled that the administration exceeded its authority with the reciprocal tariff policy but granted a reprieve to keep the tariffs in force pending appeal.
• Wall Street traders have embraced the “TACO” trade strategy, buying stocks on the expectation that tariff threats will be eased and markets will rebound.
• Analysts warn that the viral nickname may encourage Mr. Trump to uphold or even escalate tariffs to counter the perception that he habitually backs down.