During a recent press conference, President Donald Trump had a contentious exchange with a reporter who introduced a new acronym, TACO—standing for “Trump Always Chickens Out.” Caught off guard and unfamiliar with the term, Trump branded the question as “nasty,” expressing irritation not just at the term but also due to his team’s oversight in not informing him about its emergence.
A senior White House official noted that Trump interpreted the phrase as a direct insult, which understandably frustrated him. Coined by Financial Times columnist Robert Armstrong earlier this month, TACO has gained traction on Wall Street, leading traders to assume that they need not worry about Trump’s tariff threats, given his tendency to backtrack under pressure.
Post-conference, Trump was visibly annoyed, not only because of the term but also because it implied weakness in his negotiation style—something he is sensitive to. His approach to tariffs is generally to start with high rates, which he then lowers if his negotiating strategies yield results. He was eager to clarify that these decisions are tactical, not signs of retreat.
In the past week, Trump had issued threats of steep tariffs—such as 50% on the EU—before later softening his stance in exchange for more constructive negotiations. He had also adjusted a significant tariff on Chinese goods from 145% to 30% shortly thereafter.
Armstrong introduced TACO to frame Trump’s tendency to reassess his tariff decisions after market reactions suggest negativity. He argues that Trump’s pattern of imposing high tariffs often leads to market drops, only for them to bounce back once he adjusts his stance. This perceived volatility in his tariffs is mirrored in the market behavior, as seen in the uptick of stocks following Trump’s retreats.
Initially, TACO circulated as a light-hearted joke among financial commentators on social media, quickly embedding itself into Wall Street dialogues and economic analyses. Armstrong noted his surprise at the term’s rapid acceptance and significance within financial circles.
In contrast, Trump dismissed the term outright, insisting that his actions were deliberate negotiation tactics rather than indications of cowardice: “You call that chickening out? It’s called negotiation,” he remarked during the briefing. Ultimately, the TACO acronym’s rise within the discourse highlights the intersection of politics and finance, revealing how Trump’s unpredictable tariff strategies have not only economic implications but also impact his public perception.