A new acronym coined by Wall Street insiders and political commentators is putting former President Donald Trump on the defensive as he ramps up his 2024 campaign rhetoric on trade. The term, “TACO” — short for “Trump Always Chickens Out” — has gained viral traction in financial circles and the media, describing Trump’s frequent tariff threats that are later reversed or watered down amid market backlash.
The label was popularized by Financial Times columnist Robert Armstrong, who highlighted Trump’s pattern of bold protectionist announcements followed by quiet retreats. Since then, “TACO” has become shorthand among investors wary of renewed trade turbulence should Trump return to the White House.
The criticism intensified this week as Trump faced backlash over his latest tariff proposal targeting European automakers. Markets dipped on the news, only to recover days later after sources suggested the tariffs may be delayed or adjusted — a familiar cycle that prompted renewed use of the “TACO” tag on social media and trading floors.
Democrats have quickly embraced the jibe. California Governor Gavin Newsom, a frequent Trump critic, quipped on Thursday, “It’s raining tacos today,” following a federal appeals court decision that invalidated several of Trump’s earlier tariff actions on Chinese electronics.
Trump, never one to shy away from a fight, dismissed the “TACO” moniker during a press conference in Florida. “That’s a nasty question,” he said when asked about the term by a reporter. “We don’t back down. We negotiate smart. That’s how we win.”
Still, analysts say the nickname underscores deeper concerns about policy instability under Trump’s leadership. “Markets hate unpredictability,” said Michelle Turner, a trade strategist at BroadRock Capital. “The TACO narrative sticks because it captures that erratic pattern investors have seen before.”
As Trump eyes a possible return to the presidency, the “TACO” label may continue to follow him — an unusually spicy symbol of Wall Street’s skepticism toward his trade tactics.
