‘TACO Trade' sparks furor: What does it mean and why is Donald Trump angry about it?
As the world navigates through the several waves of tariff threats from US President Donald Trump, the Wall Street has a new word for the leader that has him rattled.
The new buzzword in question is 'TACO Trade' – a term that Donald Trump has been fuming about. The word TACO stands for 'Trump Always Chickens Out'.
Here is what TACO Trade really means.
The term TACO (Trump Always Chickens Out) was coined by Robert Armstrong, a columnist at The Financial Times. He first used the word to describe a recurring pattern in the trade strategy of the US President.
TACO Trade refers to Trump's signature cycle of threatening to impose sweeping tariffs and then 'chickening out' to scale them back or delay their implementation.
For example, on April 2, Donald Trump threatened to impose sweeping new tariffs on almost every country in the world, including a 26 per cent levy on Indian imports. However, seven days later, he decided to pause these tariffs for 90 days to instead work on trade deals after markets crashed severely and the Republican President faced severe backlash.
TACO Trade typically works in this cycle:
Tariff Threat: As the first step, Donald Trump threatens with high tariffs or aggressive trade policies, sparking worldwide reaction.
Market Reaction: Investors react to the uncertainty of the threat and markets tumble, especially stocks tied to global trade.
Trump Backtracks: Donald Trump talks with the country or company in question and finds a solution to backtrack on the threat or pause it.
Markets Rebound: Markets go through a rally after investors anticipate the pattern and buy stocks at lower prices.
Donakd Trump was visibly offended when asked about the phrase Wednesday and rejected the idea that he's 'chickening out", terming the reporter's inquiry 'nasty".
"You call that chickening out? It's called negotiation,' Trump said, 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 per cent on Chinese goods, only to pull back to 30 per cent for 90 days of negotiations.
Similarly, last week he threatened to impose a 50 per cent tax on goods from the European Union starting June, only to delay the tariff hike until July 9 so that negotiations can occur while the baseline 10 per cent tariff continues to be charged.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
28 minutes ago
- Hans India
Europe can't show any flexibility on countering terrorism: Denmark's former Ambassador backs India's stance
Denmark, which will assume the Presidency of the Council of the European Union this year, continues to back India's Operation Sindoor and New Delhi's call for a global, united effort to combat the threat of terrorism. Speaking exclusively to IANS, Freddy Svane, the former Danish Ambassador to India, asserted that there can be no flexibility on the European side as far as countering terrorism is concerned. Lauding India's Operation Sindoor diplomatic outreach mission, the seasoned diplomat also backed calls to put Pakistan back on the grey list of the Financial Action Task Force (FATF). Excerpts: IANS: India is sending a very strong global message against terrorism with the visit of all-party delegations to various countries, one of which was also in Copenhagen till Saturday. How do you see this entire exercise? Freddy Svane: I think it's very important that the message that you are going to spread is listened to, heard and action taken on it. Therefore, I am pleased, having also served as Ambassador to India for more than 10 years, that India has on the backdrop of this really, really sad and deadly, inhumane Pahalgam incident, now stands up and speaks against terror. We all need to really move away from words towards actions. Therefore, the decision of the Government of India, of Prime Minister Narendra Modi, to send a group of parliamentarians across the globe to speak about how we jointly fight terror is so important and very well received, also here in Denmark. IANS: Do you think that India has emerged as a stronger nation during Operation Sindoor? Freddy Svane: I think so. Even now, I asked some of the visiting Indian parliamentarians here that is that a new thing? As I have never in my life experienced that India would be sending such all-party delegations across the globe to really voice its concerns about terror and the impact of terror. I was told there was some similar thing done decades back. But the fact that India is now standing up on this is important. It will give India a special role and a special place because India now stands up against terror. That's a new normal, and nobody should be in any doubt of what will happen if terror is not stopped. We are working closely together, as a world and as one big family. IANS: Pakistan, however, isn't learning from its mistakes and continues to export terror to India... Freddy Svane: I lived in India, as you all know, for 10 years, over two periods of time. We lived with terror, we felt the impact and so forth. Obviously, we all knew that Pakistan was behind them one way or another. You might argue that there are different faces in Pakistan; there's the political and the army. But, when it boils down to terror, there can't be two faces. There's only one ugly face, and we know that Pakistan has been instigating a lot of terror attacks against India. Sadly, with this incident, the time is really ripe for a conscious joint and coordinated response to terror, and thereby also calling out Pakistan. IANS: Do you think it is high time to put Pakistan back on the FATF grey list? Freddy Svane: I think so. Terror doesn't come out of the blue. It's something that has to be financed, structured and so forth. So, it's a long, concerted action that lies behind all this terror. And therefore, you need to do whatever you can globally, also regionally, to secure that we don't have financing that will flow into the streams of terror. It has to stop. Yes, Pakistan has to be put where it belongs. So, they have to be put on that list, no doubt about that. IANS: You first met Prime Minister Narendra Modi when he was the Chief Minister of Gujarat. India has grown tremendously under his leadership over the last decade or so... Freddy Svane: That's true. I have seen India growing. I have a huge passion for India, and so will be known by many. I was the first European Ambassador when I was in service, really to meet the honourable Prime Minister today. I met him back in May 2011 in Gujarat, and we had a very nice and long interaction. That, of course, grew over the years. When I came back as Ambassador from a second tenure in 2019, we continued, and we developed the Green Strategic Partnership. So, I think we have a very, very close and good relationship. I have seen India growing, becoming much more outward-looking. India has its own role. It's a country, a nation, which is really trying to define its own trajectory towards what is called 'Viksit Bharat' and I am a strong believer myself in 'Viksit Bharat', meaning that, of course, we have to work together and that's what Denmark and India have been doing. Under Prime Minister Modi's leadership, India has grown and will continue to grow, no doubt about that. We need a strong India, no doubt about that either. IANS: PM Modi has established himself as a very strong global leader over the years and has proved it yet again during Operation Sindoor... Freddy Svane: Yes, he has. In my interaction with the visiting parliamentary delegation, I also highlighted that when India had the G20 presidency, it rose as a global power by calling the Global South, and by also inviting the African Union into the G20. All that is a combination, the agenda of India and Prime Minister Modi to be a global player that will have a role to secure that the world will be a better, greener and more sustainable place for all of us in the future. Obviously, Prime Minister Modi, by his resolute action through Operation Sindoor, has really shown that India has drawn new red lines and that is the new normal. You should not really be in any doubt that India is a power that is ready, willing to act whenever it's needed. That's a new normal here, thanks to Honourable Prime Minister Narendra Modi. IANS: Do you think Operation Sindoor has boosted PM Modi's image further and added to the numerous achievements of his government in the last 11 very successful years? Freddy Svane: Of course, the fact that all party delegations are sent to various countries in various parts of the world just to speak about Operation Sindoor and the atrocities proves it. It shows that it is time now to stand up against terror and the way in which Pakistan, almost throughout its lifetime, has instigated terror attacks. India has shown that it has grown and is a global player, a very, very important player and that India can take action. You need a strong leader like Prime Minister Modi who can steer that kind of direction and make it clear that I am the man and I am the true defender of India. Therefore, his popularity, also outside of India, has grown, and there will be no person on this planet who will be in doubt of who is in charge and who is the leader of India, which is not only the most populous nation on earth but also the fourth largest economy of the world. So, Prime Minister Modi has grown and is being seen across the world as a very, very important, strong and strategic thinking leader, which is so important for all of us. A strong India, a strong Prime Minister is what we are looking for, and that is what we have got, though sadly on a very bad backdrop of this deadly Pahalgam incident. But when times are bad and things have to be dealt with, you also need someone who can move from words to actions. That has happened, and it is really fantastic. IANS: Do you see European countries on the same page as far as countering state-sponsored terrorism is concerned? Freddy Svane: This is a tricky question. I think, at least nowadays, and given whatever happened in India and given the atrocities and inhuman behaviour, there can be no flexibility on the European side as to how we have to fight terror. Terror is a global menace that we have to really fight, and whatever tool we have, we should deploy. I do hope that, with this tour of Indian parliamentary groups, there is a common understanding and a kind of awareness that we have to move away from words to actions. Of course, I will be following a little bit closely what will come out of all these visits to various countries - will there be more coordinated, more joint efforts to fight terror, or will we just see another range of words and no actions? I think the answer lies very much in the way in which India will take these visits and say we have sent all party delegations to these countries, important countries across the globe, and now there is a common sense that we have to do and deal with terror and let's propose some actions. So, I hope that India will come up with that kind of action programme, saying this is what we need to do, and hopefully, countries not just in Europe but also other places on this planet will join in and say terror is a global menace and we have to fight it. Terror will happen as long as we are not united. Now we seem to be united, thanks to India and Prime Minister Modi. IANS: Pakistan is left with very few 'all-weather friends', is it not high time that these countries too realise that they are backing a terror state? Freddy Svane: Yeah, but I'm not surprised that some countries have placed themselves in that camp. I think we all have to get together and find and define the common position because terror, regardless of how we define what terror is, and what kind of components will go into terror, cannot be in any country, any population, or any people's interests to face the menace of terror. Therefore, we have to stand together. I hope that the diplomatic outreach will at least secure that more and more countries will join the camp of India and say, enough is enough. Let's now move from words, diplomatically framed words, to actions. Therefore, as I said, I hope, as a former Ambassador to India, that India and Prime Minister Modi will stand up and say this is the catalogue of actions we need to take. IANS: What was your first reaction on hearing about the extradition of 2008 Mumbai terror attack accused Tahawwur Rana to India, who was also prosecuted for providing material support for a terror attack in Denmark? Freddy Svane: I was so relieved. I think it shows that justice will prevail at some point in time, and those who are committing terror and terror-related activities will be brought to justice. There should be no safe haven for terrorists. When I saw the extradition of Rana to India, I felt relieved because India has been pushing for that for many, many years, and finally, the extradition happened. I do hope that it sends a very strong message across that you can't hide, use whatever kind of institutional tool that you might access to prevent yourself from being brought to justice. So, it was a great, great, great achievement, I will say! IANS: Denmark is also the only country in the world with which India has a Green Strategic Partnership. How do you see this bilateral relationship progressing? Freddy Svane: I don't see any limits to it. If I may say so. It all started with my first meeting with the honourable Chief Minister, now Prime Minister, back in May 2011 in Gujarat. The two of us discussed how we could work together at that time. I was the Danish Ambassador, but we had a kind of shared vision, a mission to move towards a greener and sustainable development. In that context, we developed this kind of idea. We had, in fact, in 2012-13 held a number of seminars, workshops in Gujarat's Gandhinagar, where we put focus on renewables, wind, water and so forth. I see there's a direct line between this and the fact that we have this green strategic partnership, I think it combines -- as honourable Prime Minister has said many times -- it combines the skills of India and the skills of Denmark. India has a lot of skills. I went to Khavda, the Adani big project, last year. I was so blown away by the magnitude and the kind of strategy aligned behind it. It was an eye-opener, and it shows that the green transition, green strategic cooperation, whatever we call it, is so important. It's not only good for bilateral relations but a must for all of us. We need to secure that we have a better and more sustainable world so that we can look into the future. Our next generations will be suffering if we don't crack this climate crisis. Therefore, I was so pleased when honourable Prime Minister Modi came to Denmark, and we could really take the green strategic partnership forward, which is so important. I do hope that it will also inspire others because what can be done bilaterally is not enough. It calls for a kind of global action, like the fight against terror.
Mint
30 minutes ago
- Mint
Indian airlines having more planes provide rationale for investments: AI chief Campbell Wilson
New Delhi, Jun 1 (PTI) Indian carriers having more planes in their fleets provides businesses a rationale to invest in the country's aviation space as there will be a local market as well as an export market for services and support, according to Air India chief Campbell Wilson. In an interview to PTI, Wilson said there is a lot of interest in India and a lot of people are keen to partner with Air India. "There is an air about India". The country's aviation industry directly employs 3,69,700 people and generates USD 5.6 billion of GDP. When indirect, induced and tourism impacts are included, the total rises to 7.7 million jobs and USD 53.6 billion of GDP (1.5 per cent), as per global airlines' grouping IATA, which is holding its annual general meeting in India after a gap of 42 years. "There is a lot of confidence people are drawing from the transformation of Air India but also Indian aviation. (People are more) willing to invest in India. "The fact that there is going to be a much more sizeable Indian-domiciled fleet gives all sorts of businesses a rationale to invest because there is a local market in addition to an export market for services and support. So, surely the interest is coming and I think the benefits will accrue in the years to come," the Air India CEO and MD said. More than 2,500 civil aircraft are expected to come into India in the next 20 years. Air India and IndiGo have placed orders for more than 1,000 planes in recent years. The Tata Group-owned Air India is also in the middle of a five-year transformation plan. Wilson also stressed that there is a healthy competition in India among airlines. While emphasising that there is an air about India, Wilson, who has been helming Air India for nearly three years, also said the country is having an increasing say and an increasing share of voice at the OEMs (Original Equipment Manufacturers). "The biggest aircraft orders in history have been made by the Indian carriers in the last couple of years. India is a large market and by far, the fastest growing large market in the world," he said. On Friday, IATA Director General Willie Walsh said India's place in global aviation has changed dramatically, particularly over the last decade. The country has seen record aircraft orders, impressive growth, and world-class infrastructure developments, he added. The International Air Transport Association (IATA) represents about 350 airlines comprising over 80 per cent of the global air traffic.
India Today
30 minutes ago
- India Today
Even Pak did it: Congress reiterates demand for Parliament session on Op Sindoor
Congress President Mallikarjun Kharge on Sunday reiterated his party's demand for a special session of Parliament to discuss Operation Sindoor and the terror attack in Pahalgam. Addressing reporters, Kharge said that the Centre should take a cue from Pakistan, which has convened its Parliament and held deliberations on the developments, and show similar seriousness in addressing the said that the entire nation stands with the armed forces and called for unity on issues concerning national security. He urged all political leaders to exercise restraint and avoid politicising military a veiled swipe at Prime Minister Narendra Modi, the Congress President said, "We must know when to speak what. There should be unity in national matters and a focus on defeating our opponents. All leaders across the country should remain silent regarding matters of national security. It's better to understand what has happened before speaking about it. There should be no election campaign before the delegation reports are out. PM Modi should refrain from giving election speeches. There is no need for self-praise. The entire nation stands with our armed forces." He further questioned the Prime Minister's public remarks on the military operation, noting that the PM had earlier stated he had given full authority to the armed forces. "Why is he speaking again now? The Prime Minister should not make self-glorifying speeches. We have said, let's convene Parliament and talk. Even Pakistan has convened its Parliament and is holding discussions. None of us will speak against the nation," Kharge remarks came a day after he accused the BJP-led government of misleading the nation over Operation Sindoor. In a post on social media, the Congress chief alleged that instead of offering clarity on US President Donald Trump taking credit for the ceasefire between India and Pakistan, Prime Minister Modi was "on an election blitz, taking personal credit for the valour of the armed forces".He also referred to the interview given by India's Chief of Defence Staff (CDS), General Anil Chauhan, in Singapore, saying that the revelations raised important questions about defence preparedness."In the wake of the remarks made by the CDS in Singapore in an interview, there are some very important questions which need to be asked. These can only be asked if a Special Session of the Parliament is immediately convened. The Modi Government has misled the nation. The fog of war is now clearing," Kharge Chauhan, who was in Singapore for the Shangri-La Dialogue, admitted in an interview with Bloomberg for the first time that an unspecified number of Indian fighter jets were downed during the recent hostilities with India's Operation Sindoor, which was launched after the Pahalgam attacks, Pakistan had claimed that it had downed six Indian fighter jets, a claim India had previously Chauhan categorically rejected Pakistan's assertion that it had shot down six Indian jets, including four Rafales, calling it 'absolutely incorrect'."What is important is that, not the jet being down, but why they were being down... Why they were down, what mistakes were made - that are important. Numbers are not important," General Chauhan to the comments, Congress leader Jairam Ramesh said that Defence MInister Rajanth Singh should have informed the political parties about the losses before a military official revealed them InMust Watch
