Trump explodes over ‘TACO Trade' mockery as court rules on tariff powers

Daily Mirror

3 days ago

Traders have come up with the acronym TACO, which stands for 'Trump always chickens out,' in reference to the president's habit of threatening to impose tariffs on countries, and then backing off
Donald Trump erupted in anger when confronted with a mocking nickname casting doubt on his economics - just hours before a court delivered a major blow to his tariffs.
At a White House press briefing, the US leader was asked to comment on his so-called 'TACO Trade' moniker - a label that's gained traction among traders and analysts. The acronym stands for 'Trump Always Chickens Out,' referring to his repeated pattern of threatening massive tariffs on foreign goods only to back down under pressure from markets and businesses.
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The moment Trump heard the phrase, his mood turned fiery. 'It's called negotiation,' he snapped. 'They wouldn't be over here today negotiating if I didn't put a 50 per cent tariff on European goods. Visibly bristling, he continued: 'They'll say, oh, he was chicken. He was chicken. That's unbelievable. I usually have the opposite problem. They say, 'You're too tough, Mr President.''
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The question touched a nerve just as Trump's carefully crafted image as a hard-nosed dealmaker faces mounting challenges, both from Wall Street sceptics and the US legal system. In recent weeks, Trump has walked back two high-profile tariff announcements.
On May 12, he placed a 90-day freeze on a planned 145 per cent tariff on Chinese imports. Less than two weeks later, on May 26, he delayed a 50 per cent tariff on European goods until July. In both cases, financial markets rallied sharply after the announcements.
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The 'TACO Trade' label is now shorthand for what some traders say is a predictable cycle of tariff threats followed by economic panic and then a quiet reversal. But on Wednesday, the blow to Trump's economic policy became more real.
The US Court of International Trade ruled that the president overstepped his authority when imposing broad tariffs under the International Emergency Economic Powers Act (IEEPA) - a 1977 law intended to deal with foreign threats.
In a sweeping decision, a three-judge panel said Trump's so-called 'Liberation Day' tariffs - the dramatic package of duties introduced last month - were legally invalid. The ruling came in response to two separate lawsuits.
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One was filed by the Liberty Justice Centre on behalf of small US importers. The other was brought by a coalition of state governments challenging the tariffs as unconstitutional and economically harmful. The court gave the Trump administration ten days to cancel most of the disputed tariffs.
Reacting swiftly, a White House spokesperson signalled the administration had appealed, arguing: 'It is not for unelected judges to decide how to properly address a national emergency.' The court's ruling also blocked a separate set of tariffs Trump imposed on imports from China, Mexico, and Canada, which he had claimed were necessary to combat the flow of illegal drugs and immigration.
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However, the ruling did not address tariffs on specific products such as cars, steel, and aluminium, which were enacted under different statutes and remain in place for now.
The legal defeat casts a shadow over a newly brokered trade agreement between the US and the UK, which was announced earlier this month. That deal included reductions or eliminations of tariffs on major British exports to the US, including cars, steel, and aluminium.
While those sector-specific deals are still valid, the court decision has raised concerns about a ten per cent blanket tariff on most other UK goods, a key element of the agreement. The UK government has not yet commented on the ruling, but a spokesperson said it remains 'committed to ensuring British businesses can benefit from the deal as quickly as possible.'
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Analysts say the court's rebuke and the rise of the 'TACO Trade' narrative together represent a turning point in Trump's economic strategy. His 'America First' approach relied heavily on the threat of punitive tariffs to force concessions from global trade partners. But critics now argue that the legal system and financial markets have exposed the limits of that strategy.
'When traders see that tariffs are more bark than bite, it undermines the whole policy,' said one senior analyst. 'The TACO nickname might sound flippant, but it reflects a serious concern that these trade threats are just posturing.'
Trump, however, remains defiant. Allies insist the president's tactics have led to meaningful concessions from trading partners and that the court's ruling, if upheld, would weaken America's ability to respond to global economic threats.