Wall Street has an acronym they are using to mock Trump and his trade bluffs that have resulted in Trump walking back his bigly trade wars — TACO trade.
TACO trade refers to “Trump Always Chickens Out,” coined by Financial Times columnist Robert Armstrong. It has since become a favorite among stockbrokers who are recognizing that investors are profiting from buying the dip that follows Trump’s tariff trade saber rattling threats.
Trump fumbled for words when asked about the acronym by a reporter on Wednesday, and ended with one of his favorite descriptions of the questioning by reporters — nasty.
One economist, David Rosenberg of Rosenberg Research, warned on Wednesday that economists should be wary, as profits may not be as prolific now that the TACO cat is out of the bag, and that tariffs will be affecting the economy with slow growth and inflation.
“The question is, at what point will the president’s credibility become impaired because you only get so many tries at kicking the tariff can down the road. … As for the markets, they are playing the role of dog in President Trump’s impersonation of Ivan Pavlov.”
