What is 'TACO trade?' The Trump acronym about tariffs, explained
- The acronym TACO, meaning "Trump always chickens out," describes an investment approach in response to Trump's tariff policies.
- Trump has implemented and reversed tariffs on numerous occasions since taking office in January.
- Trump dismissed the TACO acronym as a "nasty question" and defended his tariffs as negotiation.
President Donald Trump has bemoaned a new acronym that has been used to describe his approach to tariffs.
Financial Times columnist Robert Armstrong coined "TACO trade" in May, describing how some investors anticipate market rebounds amid Trump's on-again, off-again tariff policies.
Trump hit back at a reporter who asked about the term on May 28, saying, "you ask a nasty question like that. It's called negotiation."
But the notion of TACO trade has taken off online, with several artificial intelligence images of Trump adorned in tacos or chicken suits being shared online alongside memes about the term.
So, what does TACO trade mean?
What does the TACO acronym stand for?
The acronym stands for "Trump always chickens out."
Armstrong describes TACO trade as many investors' strategy to buy into the market that dips when Trump announces steep tariffs on the assumption that he will back off his tariff order, and the market will rebound.
What has Trump done with tariffs that prompted 'TACO trade'
The Trump administration has issued tariffs on imports from top trade partners like Mexico, Canada and China that have subsequently been walked back.
On April 2, which he deemed as "Liberation Day," he announced a slate of baseline tariffs on the majority of countries in the world, promising steeper rates for a subset of countries that would go into effect soon after the announcement. But he later delayed the steeper tariffs.
An analysis from the Washington Post found the Trump administration has announced new or revised tariff polices more than 50 times since taking office, though many of the moves were short-lived.
U.S. stocks faced volatility in the aftermath of many tariff announcements.
Trump reacts to 'TACO trade' questions
A reporter asked Trump about his response to the "TACO trade" jab in a May 28 White House press conference.
"Oh, isn't that nice. I chicken out. I've never heard that," Trump said, going on to defend his tariff decisions by arguing that establishing the high tariffs has prompted global leaders to negotiate.
"We had a dead country ... people didn't think it was going to survive, and you ask a nasty question like that," Trump said. "It's called negotiation ... don't ever say what you said."
Trump's 2004 SNL skit resurfaces amid 'chickening out' accusations
The internet has had a field day with the term "TACO trade."
Memes, AI images and videos riffing on Trump with tacos and chickens have been shared on X and Bluesky.
One clip has been resurfaced countless times: a video of Trump's 2004 "Saturday Night Live" appearance in a skit promoting “Donald Trump’s House of Wings.”
In it, a yellow-suited Trump is joined by singing chicks in eggs played by SNL stars Amy Poehler, Maya Rudolph, Seth Meyers and Kenan Thompson.
The skit, which came out at the height of Trump's fame as the host of "The Apprentice" spoofed on Trump's propensity to put his name on things he sells, according to People.
Contributing: Joey Garrison, Jim Sergent, Paste BN
Kinsey Crowley is the Trump Connect reporter for the Paste BN Network. Reach her at kcrowley@gannett.com. Follow her on X and TikTok @kinseycrowley or Bluesky at @kinseycrowley.bsky.social.