Donald Trump rejects 'TACO trade' label, suggesting he backpedals on tariffs
President Donald Trump on Wednesday dismissed the notion that he has a tendency to back down from his own tariff threats, forcefully rejecting a term coined by financial analysts to describe his perceived pattern of retreat.
During an Oval Office event, Trump was asked to respond to the “TACO trade,” an acronym for “Trump Always Chickens Out,” which has gained traction on Wall Street and was first popularised by Financial Times columnist Robert Armstrong.
The concept suggests investors should not overreact to Trump’s tough trade talk, as he often reverses course — prompting market rebounds.
“I chicken out? Oh, I’ve never heard that,” Trump said. “You mean because I reduced China from 145% that I set down to 100 and then to another number?”
The president’s comment referenced his recent tariff policy on Chinese goods, which saw rates drop from 145% to 30% in a matter of weeks — a shift that unsettled markets before sparking a rally.
Trump appeared visibly irritated by the question, accusing the reporter of levelling what he termed “the nastiest question.”
Trump becomes even more unhinged when he hears “TACO” (Trump Always Chickens Out). Share the hell out of this clip. #TACOTrump pic.twitter.com/cfKwmmmNsa
The exchange comes amid renewed volatility in global markets driven by Trump’s abrupt moves on trade.
Only last week, he warned of imminent 50% tariffs on European Union imports from June 1. Hours later, he indicated negotiations were ongoing.
Two days afterward, he extended the deadline to 9 July following what he described as “promising talks.”
“You call that chickening out?” Trump asked, explaining his approach as a deliberate negotiation tactic. “It’s called negotiation,” he said. “Sometimes, you set a ridiculous high number and go down if they give you what you want.”
Markets had been showing signs of strain, with the S&P 500 flirting with bear market territory and bond yields climbing.
Social media users are also having a field day, with 'Taco Trump' appearing everywhere on X (formerly Twitter).
ZERO Trade Deals.
— Eugene Eugenius (@CrockerBoy) May 28, 2025
Lots of talk.
Lots of promises.
Lots of bragging.
ZERO Trade Deals.#TACO #TacoTrump#Tariffs pic.twitter.com/8Icyw4lgW7TACO Trump!#TACOTRUMP pic.twitter.com/L9M7buqTPJ
— 👊Ryan King 🔥 (@RKING90210) May 28, 2025#TACO #TACOTrump pic.twitter.com/xpXj9PQN2n
— Space Fella 🇺🇦 △ (@DavideSimonett2) May 28, 2025#TacoTrump should really be trending… pic.twitter.com/Y050zeR7DX
Despite the criticism, Trump continues to defend his shifting trade strategy as effective brinkmanship.
But financial analysts argue that repeated reversals risk undermining investor confidence and the credibility of US trade policy.