As the TACO trade gains popularity, here are multiple occasions when Trump threatened and then backtracked

Time of India

a day ago

Trump promised tough
tariffs
during both his campaigns and in his second term, he's made many threats but followed through on fewer. The constant back-and-forth on tariffs has made businesses uncertain, caused job cuts, delayed investments, and shook the stock market, as per reports.
Financial analysts have started calling this behavior
TACO trade
, meaning 'Trump Always Chickens Out.'When asked about this phrase, Trump got defensive and said, 'It's called negotiation.' This information is from an NBC News report.
10 times Trump threatened tariffs but then backed down
1. European Union Tariffs
Trump said on a Friday that he would put 50% tariffs on the E.U. starting June 1 because they weren't serious about trade talks. Two days later, he delayed them until July 9 after speaking with E.U. Commission President Ursula von der Leyen said that on April 2, he first announced 20% tariffs, but later the same day, he lowered them to 10% for 90 days. As per NBC News, E.U. tariffs are still at 10% today.
2. Wine Tariff
On March 13, Trump posted he'd slap a 200% tariff on E.U. wine after the E.U. threatened 50% on American whiskey. This back-and-forth never happened. A week later, the E.U. stated that the whiskey tariff would be delayed to give time for discussions. No special wine tariffs were added, only the usual 10% one, as per reports.
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3. Canada and Mexico Tariffs
Early in office, Trump said he'd put 25% tariffs on imports from Canada and Mexico due to fentanyl concerns. Canada and Mexico hit back with tariffs, and Canadian citizens boycott U.S. goods. Trump paused the tariffs a day before they were to start, saying both countries were improving border actions.
According to the reports, on March 4, he said tariffs were back on, but two days later, paused them again until April 2. When he announced wider global tariffs on April 2, he excluded Canada and Mexico. Today, most goods from both countries have no new tariffs, thanks to the North American trade deal.
4. Tariff on Films
On May 4, Trump tweeted he wanted a 100% tariff on all foreign movies. Later that day, the White House said nothing was final, and they were 'exploring options.' By afternoon, Trump said he'd talk to movie industry people to keep them 'happy.' No movie tariffs have been implemented, as per reports.
5. Reciprocal Tariffs
As per reports, Trump announced tariffs on almost all countries on 'Liberation Day,' saying they'd range from 10% to 49%. He said this would restart American industry and wealth. But on April 9, the day the tariffs were supposed to begin, he delayed them until July 2 to work on separate trade deals. Meanwhile, he kept a blanket 10% tariff. Only the UK got a draft trade deal. A trade court ruled Trump went too far with these tariffs; the ruling is being appealed.
6. China Tariffs
Trump repeatedly accused China of cheating the U.S. and shooting tariffs to over 145% in April. This caused U.S. companies to stop China orders and shipments. Then Trump lowered tariffs to 10% for 90 days to start talks after a meeting between Treasury Sec. Scott Bessent and Chinese officials. A separate 20% tariff on fentanyl ingredients from China stayed. A court ruling this week struck down both tariffs, but they remain during appeals, as stated in the reports.
7. Tariff on iPhones
After raising China tariffs, Trump made an exception for iPhones, lowering it to 20%. Last Friday, he said he'd put a 25% tariff on iPhones no matter where they're made, starting at the end of June. Trump wants iPhones to be made in the U.S., but Apple is shifting production to India.
As mentioned in the report by NBC News, officials walked it back. Treasury Sec. Bessent said it's more about phone chips than full phones. Kevin Hassett said the move was just a small negotiation tactic and they don't want to 'harm Apple.'
8. Colombia Tariff
After Colombia blocked two U.S. military flights carrying migrants on his sixth day back in office, Trump threatened to impose 25% tariffs. Colombia replied with their own 25% tariff, but soon allowed the flights.Both sides dropped the threats within a day.
9. Tariff on Dolls
On May 8, Trump said he'd put a 100% tariff on Mattel toys, even if they stopped making them in China, unless they moved production to the U.S. He said if prices went up, kids in the U.S. would just have fewer dolls. Later, Trump said the U.S. should focus on making high-tech items like chips, computers, tanks, ships, not toys or T-shirts.
10. Auto Tariffs
Announcement of a 25% tariff on all foreign-made cars was made by Trump on April 3. A month later, he eased some of those to avoid hurting the U.S.-assembled cars that use foreign parts. He later said cars from the U.K., like Land Rover and Aston Martin, would get just a 10% tariff under a draft U.S.-U.K. trade deal still being negotiated, as per NBC News report.
FAQs:
Q1. What is
TACO
trade?
TACO trade stands for 'Trump Always Chickens Out,' which refers to Trump's habit of backing down on
tariff threats
.
Q2. How do Trump's tariff threats affect?
They cause uncertainty, delay investments, and impact jobs and the stock market.