Trump reportedly fuming after being left in the dark about TACO — sources say he felt blindsided by team
Live Events
FAQs
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
On Wednesday, Trump got mad during a press conference when a reporter mentioned 'TACO.' TACO stands for 'Trump Always Chickens Out', it's a joke about how Trump often backs down from his tough tariff threats. A senior White House official told CNN that Trump had never heard of the term before that moment, as per reports.Trump even said out loud, 'I've never heard that,' and called it 'the nastiest question.' The official said Trump thought the reporter was literally calling him a chicken. Trump felt frustrated, not just because of the term, but because his own team didn't warn him about it becoming popular, according to the report by CNN.He vented to his team right after the press conference. The term hurt Trump because it made him seem weak, and he hates being seen that way. One source said Trump got upset because people didn't understand he uses tariff threats as leverage in negotiations.Trump explained at the event that sometimes he sets high tariffs, then lowers them if other countries give him what he wants. 'It clearly bothered him,' the source added, saying Trump doesn't like being called weak.Just recently, Trump threatened a 50% tariff on the EU, but then extended talks instead of acting immediately. He also re-threatened China with more tariffs but pulled back after making a new deal. Last month, Trump raised tariffs on Chinese goods to 145%, but now they're down to 30%.The term 'TACO' first came from a May 2 article by Robert Armstrong of the Financial Times. Armstrong writes a finance newsletter called Unhedged, where he uses 'TACO' to explain Trump's back-and-forth trade style.Armstrong said markets learned not to panic too much because Trump often backs off when economic pain gets real. The 'TACO' theory says this, when Trump makes a scary tariff threat, stocks fall, but they bounce back when he steps down. The nickname started becoming a joke among finance people on X. It got even bigger, analysts and economists started using it in reports and client notes.Even Armstrong was surprised how fast the term spread in Wall Street circles. On his podcast, Armstrong said social media is a mystery to him. He joked that he hopes TACO doesn't make Trump stop 'chickening out,' because backing away from bad policies is a good thing, as per the Financial Times podcast.Trump wasn't happy with the term at all, he told the reporter, 'You call that chickening out? It's called negotiation', as per reports.It stands for 'Trump Always Chickens Out', a joke about him pulling back on trade threats.He didn't know about it and felt it made him look weak in front of the media.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Wire
11 minutes ago
- The Wire
How India's New FTAs Reflect a Particular Geopolitical Vision
Menu हिंदी తెలుగు اردو Home Politics Economy World Security Law Science Society Culture Editor's Pick Opinion Support independent journalism. Donate Now Economy How India's New FTAs Reflect a Particular Geopolitical Vision Sharmila Kantha 3 minutes ago As India inks a landmark trade deal with the UK, it's clear: a decisive pivot is underway. FTAs are no longer just economic instruments – they're now central to India's global power play. Representative image. Photo: Real journalism holds power accountable Since 2015, The Wire has done just that. But we can continue only with your support. Contribute now India is according a ' high degree of urgency ' to entering into free trade agreements (FTAs) with the United States, the European Union (EU), the United Kingdom and other advanced nations, which are seen as complementary, more competitive and open-market economies with conducive business environments. The process of negotiations has gained intensity since US President Trump's announcements on 'reciprocal tariffs' to be imposed on all its trading partners. While the stated additional tariffs of 26% on Indian goods have been deferred by 90 days as with other countries, during Prime Minister Modi's visit to the US in February 2025, India and the US had already decided to finalise the first phase of a Bilateral Trade Agreement by the fourth quarter of 2025. They further agreed upon the terms of reference for the negotiations during US Vice President Vance's visit to India in April 2025. The renewed focus on FTAs with developed countries is part of a shift in India's global economic strategy over the last few years, where it has prioritised leveraging its own large market for better access to partner markets with transparent trading mechanisms. Accordingly, trade and economic agreements have been inked with the European Free Trade Association (EFTA), United Arab Emirates, Australia, and Mauritius over the last five years. The India-UK FTA was concluded this month, with the text of the many chapters yet to be finalised. In addition, negotiations are ongoing with New Zealand, Qatar, and Oman. Act East policy and the evolution of India's trade agreements India's first economic agreement took place with Sri Lanka in 1999, followed up with a spate of pacts with Japan, Malaysia, South Korea, Association of Southeast Asian Nations (ASEAN), Singapore, and others. While some of the agreements were comprehensive in scope, covering trade in goods and services and investments, others related to preferential trade agreements with limited concessions on both sides. Agreements with both developed and middle-income countries to the east of India were aimed at enhancing India's participation in global value chains, lowering tariff and non-tariff barriers in rapidly growing markets, and building strategic partnerships beyond trade. For example, the ASEAN-India Trade in Goods Agreement came into force on 1 January 2010, followed by the ASEAN-India Trade in Services Agreement and the ASEAN-India Investment Agreement, both signed in November 2014. These pacts solidified India's 'Look East' policy, which was later upgraded to the 'Act East' policy. At the same time, many rounds of discussions were held, including with the EU, Gulf Cooperation Council (GCC), Australia, and New Zealand, which did not yield outcomes and were shelved. Thus, there was a gap of several years before India revisited its FTA policy (Kumar 2025). India's trade performance with major partners This gap arose as data on existing agreements revealed that India's imports from its FTA partners rose at a faster pace than its exports, leading to growing trade deficits with these countries (Srivastava 2025). Over a longer term, it has been found that the compound annual growth rate (CAGR) of India's imports and exports for the period 2009-10 to 2023-24 has varied greatly, and within this, trade with FTA partners has been relatively subdued as compared to trade with other major partners. Table 1. India's imports and exports with select economies, 2009-10 and 2023-24, in US$ million Imports Exports Country/Region 2009-10 2023-24 CAGR % 2009-10 2023-24 CAGR % EU 34 61.5 4.3 29.9 75.9 6.9 ^ EFTA 15.6 22 2.5 0.8 1.9 6.2 UK* 4.5 8.4 4.6 6.2 13 5.4 US 17 42.2 6.7 19.5 77.5 10.4 ^ Australia* 12.4 16.2 1.9 1.3 7.9 13.3 ^ ASEAN # 25.8 79.7 8.4 18.1 41.2 6.1 Indonesia # 8.7 23.4 7.4 3.1 6 4.9 Malaysia # 5.2 12.8 6.7 2.8 7.2 7 ^ Singapore # 6.5 21.2 8.9 7.6 14.4 4.7 Thailand # 2.9 9.9 9.1 1.7 5 7.9 ^ Vietnam # 0.5 9.3 22.9 1.8 5.5 8.1 ^ GCC 53.5 105.5 5 30.8 56.3 4.5 China 30.8 101.7 8.9 11.6 16.7 2.6 Japan # 6.7 17.7 7.1 3.6 5.2 2.5 South Korea # 8.6 21.1 6.7 3.4 6.4 4.6 SAARC 1.7 5.2 8.5 8.4 25.6 8.3 ^ India's Total 288.4 678.2 6.3 178.8 437.1 6.6 Source: Author's calculations based on data from the Department of Commerce, Government of India. Note: * denotes countries with recent agreements # denotes countries/regions with which FTAs have been in place for several years ^ denotes countries with which India has a higher export CAGR than its overall export CAGR India's export CAGR for 2009-10 to 2023-24 was 6.6%. In Table 1, it may be seen that the pace of India's exports has been particularly brisk for countries/regions with which India does not yet have an FTA. For example, exports to the US grew by over 10% CAGR during the period 2009-10 to 2023-24. In Australia, where the FTA was not implemented until the end of December 2022, the CAGR stood at over 13%. A significant concern is the poor growth in exports to Japan and South Korea at a rate of just 2.5% and 4.6% respectively, far below India's overall CAGR. Despite a comprehensive agreement in place with South Korea since 2010 and with Japan since 2011, exports to these countries have been slow to grow, even for goods where India has a comparative advantage, such as garments and pharmaceuticals. However, both countries have preferred the investment route in economic engagement with India and have seen high success in manufacturing in India across sectors such as consumer durables and automobiles. Storied brands operating in the country, including Suzuki, Toyota, Samsung and LG, among many others, have also built significant exports from India. Trade with SAARC (South Asian Association for Regional Cooperation) countries, where the South Asian Free Trade Agreement (SAFTA) is in place, expanded significantly faster than India's overall trade, for both exports and imports, although the trade balance is overwhelmingly in India's favour. As a large economy of the region, it should attempt to build and diversify its imports from these countries to address the trade imbalance as well as to build its own regional value chains with its friendly neighbours. The fact that the CAGR for India's imports is a little higher than the CAGR for exports to these countries is encouraging, with Bangladesh seeing a CAGR of 15% and Sri Lanka at close to 10%, although the value is below US$ 2 billion for each. On the import side, India's imports from its FTA partners have certainly grown faster than its exports to these countries and also faster than its total imports. The five large ASEAN economies were particularly successful in addressing the Indian market, especially Vietnam, from where imports increased almost 18 times during the period. The non-FTA partner countries with which imports grew faster than total imports include China and the US. Barriers to trade and the way forward India is currently reviewing the older FTAs with its Act East partners, ASEAN, Japan and South Korea. However, the negotiations have not concluded even after several years of discussions. In most cases, the non-tariff barriers that India faces vis-à-vis these partners relate to standards and certifications which apply to their imports from all their source partners, and it is unlikely that these would be scaled down for India. In addition, some of the countries export primary or intermediate goods to India, which are needed for its manufacturing sector. Further, India's tariffs were higher at the outset than the tariffs prevalent in these partner countries, and hence the concessions were deeper, encouraging faster growth in imports from these countries. The discussions with the US and the EU, which are keenly eyeing the large and growing Indian market, are also posing certain challenges, which are present in the India-UK FTA as well. First, the FTAs necessitate deeper tariff cuts from India as the tariff rates in these economies are already quite low (before the US reciprocal tariffs take effect). Two, India faces stringent non-tariff measures and non-trade-related issues in these countries. For instance, India has stressed that the EU's carbon border adjustment mechanism (CBAM) and Deforestation Regulation (EUDR) go beyond trade, and if the EU continues to insist on these issues, an FTA would be difficult to finalise. Three, sectors such as dairy products, agricultural goods, automobiles, and alcohol are also sticking points in these negotiations. Again, the India-UK FTA will set a precedent in these sectors. Finally, the Western countries are keen to include issues such as labour, intellectual property, sustainability, and data management, among others, that could be onerous for India to meet (Kumar 2025). Carbon tax, immigration, and investment regulations were issues of fervent discussions with the UK, and several of the chapters included in the agreement such as government procurement, anti-corruption, and gender equity are a first for India. The extent to which India cedes policy space in these areas will be known only after the legal texts are finalised. Thus, there could be a repeat of the earlier experience of FTAs with low utilisation rates by Indian exporters (Choudhury 2023). Following the US tariff shock, there may be a softening of stance in these partners as well as in India's position. However, the new FTAs are likely to be more complex and demanding for India, and their optimal utilisation will depend largely on India's own internal reforms. While India intensifies its FTA negotiations with Western countries, its Act East policy must also remain proactive to enhance the country's strategic presence in its proximate neighborhood. Among the Asian economies, Japan and South Korea have been staunch partners for India's growth, and other economies continue to grow rapidly and deepen their integration into global value chains. As global trade shifts, India needs to be strongly linked to these value chains. Deeper economic engagement with these countries will help strengthen the gains of the decades-long policy. In a changing global trade regime, India must tread with care to balance the markets to its West and East and align its geopolitical and geo-economic objectives. Sharmila Kantha is an industrial policy specialist with Confederation of Indian Industry (CII). Associated with Indian industry for over 20 years, she has worked extensively on issues relating to economic policy and India's international economic engagement. She is the author of three books on Indian business history and her articles have been published on several websites. This article was originally published on Ideas for India. Make a contribution to Independent Journalism Related News India's Little-Known Role in African Slave Trade The World's 'Fourth Largest Economy' and its Deepest Divide Has India Really Become the World's Fourth-Largest Economy? India Rejects Claim That Trump's Trade Threat Averted War With Pakistan 'Trade Offer Averted India-Pakistan War': Trump Administration Tells US Court Watch | India Overtakes Japan as the Fourth-Largest Economy: Is the Excitement Justified? FTA: UK to Remove 99% of Tariffs on Indian Goods; India to Cut Duties on Whiskey, Autos India and China: Two Contrasting Models of Dealing With Trump's US India Out of Work: Unemployed Youth Become 'Discouraged Workers' View in Desktop Mode About Us Contact Us Support Us © Copyright. All Rights Reserved.
Time of India
13 minutes ago
- Time of India
Steel, aluminium stocks slide up to 2.5% as US doubles tariffs to 50% on imports
ADVERTISEMENT ADVERTISEMENT Shares of Indian steel and aluminium companies fell up to 2.5% in Monday's trade after the US President Donald Trump will double existing tariffs from 25% to 50% on steel and aluminium products imported into the United States, with effect from June 4, Monday, the shares of Hindalco witnessed the steepest intraday decline among metal stocks, falling by 2.4% to touch a low of 633.35. NALCO and SAIL shares both recorded a 2.2% dip, hitting intraday lows of 176.40 and 126.40, shares of JSW Steel and Tata Steel each slipped 2% in early trade, with JSW Steel touching 993.80 and Tata Steel dropping to 157.65. Jindal Stainless shares saw a decline of 1.6%, hitting a low of 633.35, while NMDC also fell 1.6% to 70.04Meanwhile, NMDC Steel shares declined by 1.5%, reaching an intraday low of 37.53, and those of Jindal Steel & Power dipped 1.47% to development has significant implications for India's export-oriented metal sector. As per government data, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the US in revised tariff structure is expected to directly impact this segment by making Indian products more expensive and less competitive in the U.S. the total USD 4.56 billion in exports, USD 587.5 million came from iron and steel, USD 3.1 billion from articles of iron or steel, and USD 860 million from aluminium and its related products. These products, now subject to sharply increased tariffs, face the risk of reduced demand in one of India's key export tariff hike was formally announced on May 30, 2025, under Section 232 of the U.S. Trade Expansion Act of 1962, which allows the American President to impose trade restrictions if imports are deemed a threat to national move revives the trade policy provision first used by Trump in 2018 to impose a 25% tariff on steel and 10% on aluminium, which were then increased to 25% across both categories earlier in February a result of the latest tariff action, US steel prices are expected to surge beyond USD 1,180 per tonne, driving up input costs for several downstream industries, including automotive, construction, and manufacturing. India has already raised a notice at the World Trade Organization (WTO) in response to the decision and may consider further action.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
India Today
15 minutes ago
- India Today
Sensex, Nifty open lower as IT, metal stocks drag market despite good GDP data
Benchmark stock market indices opened lower on Monday, dragged by a decline in Reliance Industries (RIL) stock, along with IT and metal sector S&P BSE Sensex declined 723 points to 80,728.03, while the NSE Nifty50 lost 191 points to 24,559.95 as of 9:25 VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the market structure favours continuation of the ongoing consolidation "There are global headwinds like renewed tariff concerns that will restrain a breakout rally. At the same time there are domestic tailwinds that will support the market at lower levels. President Trump's 50% tariffs on steel and aluminium is a clear message that the tariff and trade scenario will continue to be uncertain and turbulent. This headwind will impact markets," he Unilever emerged as the top performer in early trading, gaining 1.43%, followed by Adani Ports and Special Economic Zone which advanced by 0.84%. Mahindra & Mahindra showed resilience with a 0.56% uptick, while IndusInd Bank and Nestle India posted gains of 0.51% and 0.43% Bank faced the steepest decline, dropping 1.71% in opening trades. HCL Technologies was under significant pressure, falling 1.65%, while Infosys retreated by 1.45%. Reliance Industries slipped 1.43%, and Bajaj Finance rounded out the top five losers with a decline of 1.41%.advertisementNifty Midcap100 posted a marginal gain of 0.01% while Nifty Smallcap100 declined by 0.09%. The India VIX surged by 5.86%, indicating increased volatility in early indices displayed a mixed performance with both gains and losses across various segments. On the positive side, Nifty PSU Bank emerged as the top gainer with a rise of 1.45%, followed by Nifty FMCG advancing 0.50%, Nifty Realty climbing 0.25%, and Nifty Financial Services posting a modest gain of 0.83%.However, several sectors opened in negative territory with Nifty IT facing the steepest decline of 1.40%, followed by Nifty Metal dropping 1.21% and Nifty Private Bank falling 0.66%. Other notable losers included Nifty Consumer Durables down 0.83%, Nifty Pharma retreating 0.61%, Nifty Oil & Gas declining 0.61%, Nifty Media slipping 0.55%, Nifty Auto falling 0.46%, and Nifty Healthcare Index dropping marginally by 0.15%.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)Must Watch
