President Trump has recently bristled at a range of uncomfortable topics from Elon Musk’s alleged drug use to sensitive diplomatic decisions and questions about the propriety of receiving a private jet from Qatar to serve as a future Air Force One. But among the issues raised to him in the Oval Office, one in particular has clearly gotten under his skin: the so-called “TACO” trade on Wall Street.
The acronym, which stands for “Trump Always Chickens Out,” has been circulating among financial analysts and political insiders alike. It refers to a pattern where traders no longer react strongly to Trump’s tough tariff talk, having noticed that he often walks back his threats or delays enforcement. The term, coined by a Financial Times columnist, has gained traction quickly and become a shorthand way of describing what critics say is Trump’s inconsistency on economic policy.
When a reporter recently brought it up, Trump snapped, visibly irritated by the mention. “Don’t ever say what you said,” he barked. “That’s a nasty question. To me, that’s the nastiest question.” The reaction revealed just how deeply the term cuts, especially for a president who prides himself on projecting strength, decisiveness, and business mastery.
The sting of the “TACO” label appears to come from its direct challenge to Trump’s personal brand. Having built his reputation on making bold deals and taking tough stances, the idea that markets now expect him to back down under pressure strikes at the core of his image. It also comes at a time when Musk’s departure from the administration and his sharp criticism of Trump’s legislative agenda has further rattled the president and complicated efforts to maintain control over economic messaging.
The most recent example cited by market analysts occurred in early February, when Trump threatened tariffs on Canada and Mexico, only to later delay their implementation. Then in April, after imposing sweeping “reciprocal” tariffs on dozens of nations, the administration softened the blow just one week later by announcing a 90-day reprieve and lowering the tariff rate to 10 percent.
For traders and critics alike, these moves are becoming predictable. And with Musk now publicly distancing himself from Trump’s economic agenda, the president is facing mounting pressure from both financial markets and his own inner circle to appear more consistent and resolute.
The “TACO” trend may seem flippant on the surface, but for Trump, it’s a direct threat to the perception he has long cultivated: that of a fearless leader who never blinks.