Trump rejects claim he's 'chickening out' on tariffs just because he keeps changing rates
WASHINGTON (AP) — President Donald Trump wants the world to know he's no 'chicken' just because he's repeatedly backed off high tariff threats.
The U.S. Republican president's tendency to levy extremely high import taxes and then retreat has created what's known as the 'TACO' trade, an acronym coined by The Financial Times' Robert Armstrong that stands for 'Trump Always Chickens Out.' Markets generally sell off when Trump makes his tariff threats and then recover after he backs down.
Trump was visibly offended when asked about the phrase Wednesday and rejected the idea that he's 'chickening out,' saying that the reporter's inquiry was 'nasty.'
'You call that chickening out?' Trump said. 'It's called negotiation,' adding that he sets a 'ridiculous high number and I go down a little bit, you know, a little bit' until the figure is more reasonable.
Trump defended his approach of jacking up tariff rates to 145% on Chinese goods, only to pull back to 30% for 90 days of negotiations. He similarly last week threatened to impose a 50% tax on goods from the European Union starting in June, only to delay the tariff hike until July 9 so that negotiations can occur while the baseline 10% tariff continues to be charged. Similar dramas have played out over autos, electronics and the universal tariffs that Trump announced on April 2 that were based in part on individual trade deficits with other countries.
In each case, Trump generally took the stock market on a roller coaster. Investors sold-off when the tariff threats were announced as they implied slower economic growth and higher prices, which would hurt companies' profits. Stocks then rebounded after Trump stepped back.
As of Wednesday afternoon, the S&P 500 stock index was up slightly so far this year. But the index was down as much as 15% on the year on April 8, a reflection of the volatility that Trump's changing policies have created.
He said that approach has led to $14 trillion in new investment in the U.S., a figure that appears to be artificially high and has not been fully verified by economic data.
'Don't ever say what you said,' Trump said with regard to the notion of him chickening out. 'To me, that's the nastiest question.'
Trump said that EU officials would not be negotiating if not for his 50% tariff, saying he usually has the opposite problem of being 'too tough.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
27 minutes ago
- San Francisco Chronicle
Mexican band Grupo Firme cancels US show, saying their visas were suspended by Trump administration
MEXICO CITY (AP) — The popular Mexican regional music band Grupo Firme announced on Friday that it was canceling a performance in a music festival in California over the weekend after the United States government suspended the musicians' visas. It comes after the U.S. State Department has revoked visas of a number of Mexican musicians for playing a genre of music that it says glorifies cartel violence. The group, which has soared to international fame playing Mexican regional music, said in a statement posted on its Instagram account that the visas of them and their team are currently under 'administrative review by the U.S. Embassy" and that it would make it 'impossible' for them to perform in the La Onda Fest to be held in the city of Napa Valley, California on June 1. But the post didn't detail what it would mean in the long term for the musical group. The U.S. Embassy in Mexico said that visa cases are confidential according to U.S. law and couldn't provide more information on the case. The suspension is just the latest in a series of moves the administration of U.S. President Donald Trump has taken targeting Mexican artists in the genre, who in some cases have glorified the leaders of cartels as sort of Robin Hood figures. While the genre of 'narco-corridos' has stirred controversy, much of the music also speaks to the harsh realities facing Mexican youth caught in cartel violence. Two months ago, the Mexican musical group Los Alegres del Barranco was sanctioned after it projected images of the leader of the feared Jalisco New Generation Cartel at a concert in the western state of Jalisco. 'I'm a firm believer in freedom of expression, but that doesn't mean that expression should be free of consequences,' U.S. Deputy Secretary of State Christopher Landau said at the time. 'The last thing we need is a welcome mat for people who extol criminals and terrorists.'
Yahoo
28 minutes ago
- Yahoo
Wes Moore dives into 2028 race in South Carolina
COLUMBIA, SOUTH CAROLINA — Wes Moore made an early and urgent appeal Friday to one of the nation's most important Democratic constituencies. The first-term governor of Maryland said Democrats must adapt and change to counter President Donald Trump and improve life for the middle class if they have any hope of returning to power. 'Gone are the days when we are the party of bureaucracy, multi-year studies, panels, and college debate club rules,' Moore said in a speech before party insiders at the South Carolina Democrats Blue Palmetto Dinner. 'We must be the party of action.' South Carolina has a track record of vaulting Democratic primary winners to the White House, and Moore's premium speaking slot before the state's well-connected party leaders does little to tamp down speculation he's kicking the tires on an upcoming presidential bid. In a state where Donald Trump cruised to an 18-point victory nearly seven months ago, Moore said Democrats must also take cues from an unlikely instructor: the president himself. 'Urgency is the instrument of change. And do you know who understands that really well? Donald Trump,' Moore said. 'I want to be clear: We can — and we must — condemn Donald Trump's reckless actions. But we would also be foolish not to learn from his impatience.' Moore talked about his roots in Charleston, where his grandfather was born, his Army service and record on crime and job creation in Maryland. He also spoke about the perilous times the country faces, and told the crowd that he is on a 'mission' to help deliver adequate health care and livable wages for those who need them. It's a vision Moore sought to contrast with the 'reckless actions' of Trump. Moore, 46, is seen as one of the party's most promising young stars and has caught the attention of Hollywood icon and Democratic megadonor George Clooney. While many Democrats are eager to turn the page after difficult electoral losses last cycle, the governor told the party faithful that mustering up the courage to fight can't wait until the next presidential cycle. 'Anyone who is talking about 2028 does not understand the urgency of 2025,' Moore said. Earlier on Friday, Moore toured the Scout Motors Production Facility in nearby Blythewood and planned to attend a campaign-style fish fry after the dinner — making his visit seem even more like a tryout for 2028. Moore, Maryland's first — and currently the nation's only — Black governor has drawn the ire of a handful of Democrats back home and in South Carolina over his veto of a reparations bill passed by the state legislature. The measure called for the study of historic race-based inequality in the state. At least one South Carolina lawmaker, state Rep. John King, called for Moore to be disinvited from the gala. 'The governor's veto doesn't just affect Maryland,' said King, who boycotted the dinner. 'It echoes in every state where Black lawmakers are already working uphill. It makes our jobs harder, and that's something we can't afford to ignore.' The issue of reparations remains politically divisive, with a 2022 Pew Research Center survey showing that 77 percent of African Americans supported them, while less than 20 percent of white respondents did. In the governor's veto letter he suggested that with economic headwinds facing his state, it is an inopportune time to fund 'another study.' Moore has also followed other Democrats thought to be eyeing White House runs by sitting for more podcast interviews. This includes a recent appearance on 'The Breakfast Club' co-hosted by Charlamagne tha God and Kara Swisher's podcast to talk about DOGE cuts and impact to his state. He recently traveled to Georgia, a key swing state, to record an episode of a podcast hosted by Atlanta Mayor Andre Dickens and taped a hoops workout with basketball shooting coach and influencer Chris Matthews. A person familiar with Moore's schedule said he's limiting the number of out-of-state invites he is accepting to focus on his role in Maryland. But the person stressed he plans to hit the campaign trail in Virginia and New Jersey — both of which hold statewide elections this fall.
Bloomberg
28 minutes ago
- Bloomberg
Hegseth Warns About China Threat, Urges Asian Allies to Boost Defense Spending
Speaking at the Shangri-La Dialogue in Singapore, US Defense Secretary Pete Hegseth urged Washington's partners in Asia to increase defense spending and warned that "China seeks to become a hegemonic power" in the Indo-Pacific region. (Source: Other)
