The term "TACO trade" was created by Wall Street analysts.  It stands for "Trump Always Chickens Out. "  This phrase is used to describe the president's habit of not following through on his tariff threats.  This term has been used to explain why markets have been performing well recently.

The president was not happy about this.  He was speaking to reporters in the Oval Office.  He was there for the swearing-in ceremony of Jeanine Pirro.  She was becoming the new interim U. S. attorney for the District of Columbia.  A reporter asked Trump about the term.  Trump was not happy with the question.  He thought it was nasty.  He did not like the idea that people thought he was backing down from his tariff threats.

Trump's tariff policy has been a big deal.  It has brought China and the European Union to the negotiating table.  This is a big step.  It shows that Trump's tactics are working.  He sets high tariffs.  Then he lowers them a bit.  This gets other countries to want to negotiate.  It is a strategy.  It is not backing down.  It is negotiation.

The markets have been all over the place.  This is because of the trade talks between the U. S. and China.  But things are looking up.  Earlier this month, there were negotiations.  The U. S. lowered the tariff.  It is now at 30% for 90 days.  China also lowered its tariff.  It is now at 10%.  This is a good sign.  It shows that both sides are willing to compromise.

Trump's approach to trade is not for everyone.  Some people think it is too aggressive.  Others think it is just what the country needs.  But one thing is clear.  Trump is not afraid to use tariffs as a tool.  He is not backing down.  He is negotiating.  And that is something to think about.

Trump's Trade Talk Tantrum

Actions