Trump’s Tariff Tactics: Market Volatility & the ‘TACO’ Label

President Trump’s use of tariffs has been met with volatility in financial markets, leading to a new acronym coined by the Financial Times – TACO. This refers to ‘Trump Always Chickens Out,’ reflecting his tendency to shift course when facing market pressures. Recent events highlight this pattern, as markets initially reacted negatively to tariff threats before rebounding after relaxations or delays. Analysts speculate that Trump’s negotiating style, marked by these shifts, might contribute to market uncertainty. His recent press conference response underscored a volatile approach, prompting concern about further escalation.