President Donald Trump’s tendency to announce significant tariffs only to later backtrack has given rise to a new term among investors: “TACO,” which stands for “Trump Always Chickens Out.” This pattern has caused market volatility, with stocks plunging after tariff announcements and rebounding when Trump retreats. Investors have taken notice of this trend and some say they have benefited from it in an otherwise unpredictable market. The term “TACO” has been gaining traction, particularly among those in the financial sector.
A data reporter revealed that searches for “Trump” and “TACO” have surged dramatically, with a 9,900% increase on Thursday alone. This suggests that the phrase has entered mainstream consciousness.
Investors capitalizing on TACO volatility
Trump himself is aware of the term and is not pleased about it. Last week, he lashed out at a reporter who asked him about “TACO,” indicating his displeasure with the acronym. The rise of “TACO” is troubling for Trump, who has built his reputation on following through with his promises.
The association of “Trump Always Chickens Out” with his name undermines his image as a decisive leader. As the term continues to gain popularity, it remains to be seen how it will impact Trump’s political future. For now, investors are keeping a close eye on his tariff announcements and subsequent actions, ready to capitalize on the market’s reactions.
