Latest news with #EU
Korea Herald
an hour ago
- Business
- Korea Herald
European poultry – a safe choice for informed consumers. New European Union campaign in South Korea
SEOUL , South Korea, May 29, 2025 /PRNewswire/ -- European poultry meat – a wide range of products, palatability, nutritional value, as well as versatile culinary use. The poultry, which meets strict EU requirements, is presented to South Korean consumers as part of the "European Poultry – From Our Farms to Your Table" information and promotional campaign co-financed by the European Union. The goal of the three-year campaign in Korea is to show what sets European poultry apart from global production. The advantages are key: high quality, safety, and a sustainable production process – in line with strict European Union standards. These factors definitely affect the quality and taste of poultry dishes. The message places great emphasis on animal welfare, environmental protection, and the importance of balanced and safe foods in the daily diet. The campaign activities are aimed at importers, distributors, and retailers, as well as demanding consumers looking for safe, high-quality food. The campaign includes an extensive presence at trade fairs and industry conferences, the organization of B2B meetings, cooperation with the media and influencers, branding activities in the press and online, as well as study visits to Europe for selected business partners from the region.
Scoop
an hour ago
- Business
- Scoop
Roads To War: The EU's Security Action For Europe Fund
As the world was readying for the Second World War, the insightful humane Austrian author Stefan Zweig made the following glum observation: 'Openly and flagrantly, certain countries express their will to expand and make preparations for war. The politics of rearmament is pursued in broad daylight and at breakneck speed; every day you read in the papers arguments in favour of armaments expansion, the idea that it reduces unemployment and provides a boost to the stock exchange.' This is not so different from the approval by European Union countries on May 27 of a €150 billion loan program known as the Security Action for Europe (SAFE) borrowing scheme. A press release from the European Council stated that the scheme 'will finance urgent and large-scale investments in the European defence technological and industrial base (EDTIB)' with the intention of boosting 'production capacity, making sure defence equipment is available when needed, and to address existing capability gaps – ultimately strengthening the EU's overall defence readiness.' The statement also makes a central rationale clear: that SAFE will enable continued European support for Ukraine, linking its defence industry to the program. Despite not being an EU member, Kyiv will be able to participate in the scheme. Interestingly enough, the United Kingdom, despite leaving the EU, will also be able to participate via a separate agreement. Disbursements to interested member states upon demand, considered along national plans 'will take the form of competitively priced long-maturity loans, to be repaid by the beneficiary member states.' The scheme further anticipates the types of weaponry, euphemistically titled 'defence products', that will feature. As outlined by the European Council on March 6, these will comprise two categories: the first covering, amongst others, such products as ammunition and missiles, artillery systems, ground combat capabilities with support systems; the second, air and missile defence systems, maritime surface and underwater capabilities, drones and anti-drone systems and 'strategic enablers' including air-to-air refuelling, artificial intelligence and electronic warfare. The broader militarisation agenda is confirmed by linking SAFE with broader transatlantic engagement and 'complementarity with NATO.' It will 'strive to enhance interoperability, continue industrial cooperation, and ensure reciprocal access to state-of-the-art technologies with trusted partners.' Significantly, the emphasis is on collaboration: a minimum of three countries must combine when requesting funding for SAFE defence projects. There seems to be something for everyone: the militarist, the war monger and the merchants of death. Global Finance, a publication dedicated to informing 'corporate financial professionals', was already praising the SAFE proposal in April. 'The initiative has the potential to transform the business models of many top European defense groups – like Saab, which has traditionally relied on contracts from the Swedish state to grow its sales.' What a delight it will be for such defence companies to move beyond the constraints on sales imposed by their limiting governments. A veritable European market of death machinery is in the offing. The fund is intended for one, unambiguous purpose: war. The weasel word 'defence' is merely the code, the cipher. Break it, and it spells out aggression and conflict, a hankering for the next great military confrontation. The reason is traditional, historic and irrational: the Oriental despotic eminence arising from the Asian steppes, people supposedly untutored in the niceties of European good manners and democracy. Not that European manners and democracy is in splendid health. A mere glance at some of the candidates suggests decline in institutional credibility and scepticism. But we can always blame the Russians for that, deviously sowing doubt with their disinformation schemes. The initiative, and its tightening of ties with arming Ukraine, has made such critics as Hungary's Prime Minister Viktor Orbán sound modestly sensible. 'We need to invest in our own armies, but they expect us to fund Ukraine's - with billions, for years to come,' he declared in a post on X. 'We've made it clear: Hungary will not pay. Our duty is to protect our own people.' The approval of the fund by the European Commission has also angered some members of the European Parliament, an institution which has been treated with near contempt by the European Commission. European Parliament Presidente Roberta Metsola warned Commission President Ursula von der Leyen earlier in May to reconsider the use of Article 122 of the EU Treaty, which should be used sparingly in emergencies in speeding up approvals with minimal parliamentary scrutiny. Bypassing Europe's invigilating lawmakers risked 'undermining democratic legitimacy by weakening Parliament's legislative and scrutiny functions'. The Council's resort to Article 122 potentially enlivened a process that could see a legal case taken to the European Court of Justice. The European Parliament's Legal Affairs Committee (JURI) has also supported a legal opinion repudiating the Commission's cavalier approach in approving the fund. According to that tartly reasoned view, Article 122 was an inappropriate justification, as the threshold for evoking emergency powers had simply not been met. Ironically, the rearmament surge is taking place on both sides of the Atlantic, at both the behest of the Trump administration, ever aggrieved by Europe not pulling its military weight, and Moscow, characterised and caricatured as a potential invader, the catalyst for decorating a continent with bristling weaponry. The former continues to play hide and seek with Brussels while still being very much in Europe, be it in terms of permanent garrisons and military assets; the latter remains a convenient excuse to cross the palms of the military industrial establishment with silver. How Zweig would have hated it.
Yahoo
an hour ago
- Business
- Yahoo
Trump tariffs live updates: Court of International Trade deems majority of tariffs 'unlawful'
The US Court of International Trade has voted to block the vast majority of President Trump's global tariffs after deeming the method used to enact them 'unlawful'. This places most of the tariffs on an indefinite hold while the administration appeals the decision through the Supreme Court. Tariffs impacted include the flat-rate 'reciprocal' tariffs aimed at US trade partners as well as and key China-focused duties, while leaving some duties, specifically those covering steel, aluminum, and certain Chinese goods, intact. Prior to the court's decision, President Trump on Wednesday criticized an emerging Wall Street trading philosophy in response to his ever-shifting tariff policies. The term "TACO" trade — short for "Trump Always Chickens Out" — has come in response to Trump's frequent pattern with tariffs: High tariffs send markets reeling until Trump backs off. Trump called a reporter who asked him about the term "nasty" before defending his strategy as one that has helped the US gain leverage in trade negotiations. "It's called negotiation," he said. Negotiations have continued in earnest this week, with an FT report on Wednesday saying India has offered the US steep tariff cuts but is seeking to retain high duties on some agricultural commodities. India is not the only trading partner seeking a tariff reprieve. On Wednesday, the EU trade chief Maroš Šefčovič said the European Commission is discussing with the US possible cooperation in sectors such as semiconductors, steel, and aerospace, and is in search of a deal to limit tariffs. The European Union has agreed to fast-track trade talks with the US in a bid to avoid Trump's 50% tariffs — which, in an about-face, he announced would be delayed until July 9. Šefčovič said the EU held "good calls" with Trump administration officials on Monday after the close trading partners moved forward with negotiations amid Trump's tariff-fueled push to rework global trade relationships. Trump had been frustrated with the pace of negotiations, saying last week that the bloc has been "very difficult to deal with." Meanwhile, Apple (AAPL) remains in high focus after Trump said the company would face 25% tariffs if it didn't move iPhone production to the US. He later said that would apply to other phone makers, including Samsung ( Nvidia (NVDA) is also set for a high-stakes earnings report Wednesday, its first since many of the tariffs went into effect. Its stock has swung wildly this year amid Trump's tariffs and other moves. Live updates: Nvidia's earnings report Here are the latest updates as the policy reverberates around the world. The decision's focus on IEEPA immediately throws into doubt some of the most far-reaching of Trump's tariff actions since taking office. Most notably, those include his "Liberation Day" tariffs of 10% on nearly the entire world, as well as the current threat of higher tariffs on countries that fail to reach a deal during his 90-day pause. The president has also relied on IEEPA to impose duties on nations such as Mexico, Canada, and China, claiming that the nations' failure to curb the flow of illegal drugs and migration into the US threatened US national security. [...] Duties based on other laws like those Trump has imposed on certain aluminum and steel products are not included in the court's decision. Recent duties on automobiles imposed by the president use so-called Section 232 tariff authority derived from a separate law called the Trade Expansion Act of 1962. The tariffs on steel and aluminum also rely on Section 232. Read more here. President Donald Trump's tariffs have been deemed illegal and blocked in a landmark trade court ruling that ruled the president used unlawful emergency powers by imposing broad levies on imports. The decision suspends Trump's flat-rate tariffs and key China-focused duties, while leaving some tariffs, specifically those covering steel, aluminum, and some Chinese goods, intact. The ruling, issued by the Court of International Trade, is set to be appealed and could reach the Supreme Court. Investors are watching closely, as the outcome will reshape the global trade landscape and has huge ramifications on trust in Trump as a market manager. Markets, already volatile amid ongoing tariff uncertainty since the April 2 executive order, reacted swiftly to the news with major gauge futures making leaps of up to 2%. Bloomberg reports: Read more here. President Trump on Wednesday criticized an emerging Wall Street trading philosophy in response to his ever-shifting tariff policies. The term "TACO trade" — apparently first coined by the Financial Times early this month — has been flying around Wall Street in recent weeks and entered even more into the public consciousness over the past few days. The acronym stands for "Trump Always Chickens Out." The pattern is clear: Trump announces heavy tariffs, sending markets reeling until he backs off, sending markets flying. A reporter asked Trump at the White House on Wednesday for his response to the school of thought. He did not appear to be aware of the acronym, but was also not pleased to learn its meaning. "Isn't that nice ... I've never heard that," he said, before launching into a defense of recent moves. Earlier in May, the US reached a detente with China after the countries imposed massive tariffs on each other. Then last week, Trump announced massive 50% tariffs on EU imports, only to backtrack a couple days later and push back his deadline for more negotiating time. "After I did what I did, they said, 'We'll meet anytime you want,'" Trump said of the EU. He said of China, "In many ways, I think we really helped China tremendously." "Don't ever say what you said," Trump then told the reporter. "That's a nasty question." AutoZone's (AZO) management said on Tuesday that inflation from tariffs hasn't had a major impact on costs yet because it takes a while for its products to ship to the US. However, executives at the auto parts retailer said they expect inflation to accelerate if substantial tariffs remain in place. "I think one of the reasons that you haven't seen a lot of the tariff cost in our side of the business is ... most of our inventory turns relatively slow compared to many other industries, hard parts in particular," AutoZone CEO Philip Daniele said on the company's fiscal third quarter earnings call. "And that product just hasn't shown up here in the country. And as you know, this stuff has changed pretty significantly over the last 90 days or 120 days. I mean there will be an impact to tariffs on the cost of goods." AutoZone reported SKU inflation of 1% for the quarter and said it expects to see inflation of 3% over time. The company sources many of its products from China and other East Asian countries, Eastern Europe, and Mexico. AutoZone CFO Jamere Jackson noted that, other than tariffs, a lot of the drivers of cost increases have come down, particularly freight prices. "However, if we do see significant tariffs, that will indeed have an inflationary impact," Jackson stated. Reuters reports: German carmakers BMW, Mercedes-Benz and Volkswagen are in talks with the U.S. Department of Commerce on a tariff deal that would involve a mechanism to offset imports and exports, the Handelsblatt business daily reported on Wednesday. In return for tariff relief, the companies could invest billions in the United States, the report said citing company sources. It did not give a more exact sum. Reuters reports: Read more here. Yahoo Finance's senior reporter Hamza Shaban reports on Wall Street's dilemma with Trump's tariffs: Read more here. More retailers are feeling the impact of Trump's tariffs as both Macy's (M) and Michael Kors parent company Capri (CAPR) lowered their annual profit and revenue forecasts on Wednesday, citing tariffs as the cause. Capri cut its revenue forecast for 2026, signaling that tariff-related uncertainty was weighing on demand for its handbags and accessories in North America and Asia. Macy's followed in a similar fashion: Yahoo Finance senior reporter Brooke DiPalma said the company reaffirmed its sales guidance, but revised its earnings outlook due to uncertainty surrounding tariffs, consumer sentiments, and the competitive landscape. Macy's is facing multiple macro headwinds as consumer sentiment sags, costs rise with Trump's tariffs, and trends grow toward e-commerce and direct-to-consumer. Read more here. Reuters reports: Read more here. India has offered steep cuts to its import tariffs on a range of goods in talks with the US, but is said to be retaining high duties on certain agricultural commodities, according to people familiar with the negotiations. The FT reports: Read more here. Reuters reports: Read more here. As the US and European Union negotiate a new trade deal to avoid President Trump-imposed tariffs, it's worth taking a moment to note that the US and the EU have the largest bilateral trade relationship in the world. According to the Council of the European Union (and converted to USD), the transatlantic trade in goods and services topped 1.8 trillion in 2023 after a post-pandemic surge: A measure of tariff revenue has spiked this month as importers paid the baseline "Liberation Day" tariffs that went into effect on April 5, along with other duties set by President Trump. Government receipts for "Customs and Certain Excise Taxes" have already topped $22.3 billion this month, according to Treasury Department data. Yahoo Finance's Ben Werschkul reports: Read more here. Yahoo Finance's Jennifer Schonberger reports: Read more here. Yahoo Finance's Josh Schafer reports: Read more here. The Chinese Premier Li Qiang has urged Southeast Asian and Gulf states to help create a 'big market', in a bid to counter US efforts to isolate China's economy. Bloomberg News reports: Read more here. Reuters reports: Read more here. Retailers, who have suffered under Trump's tariffs, are increasingly warming to offers to sell in order to escape market volatility that has caused company valuations to seesaw in recent months, according to a report in Reuters. Reuters reports: Read more here. Bloomberg News reports: Read more here. Malaysia's Trade and Industry minister Zafrul Aziz said that the US reducing its proposed tariffs on Malaysia to 10% is a positive move, conceding that a previously hoped for levy of zero may not be possible. Bloomberg News reports: Read more here. The decision's focus on IEEPA immediately throws into doubt some of the most far-reaching of Trump's tariff actions since taking office. Most notably, those include his "Liberation Day" tariffs of 10% on nearly the entire world, as well as the current threat of higher tariffs on countries that fail to reach a deal during his 90-day pause. The president has also relied on IEEPA to impose duties on nations such as Mexico, Canada, and China, claiming that the nations' failure to curb the flow of illegal drugs and migration into the US threatened US national security. [...] Duties based on other laws like those Trump has imposed on certain aluminum and steel products are not included in the court's decision. Recent duties on automobiles imposed by the president use so-called Section 232 tariff authority derived from a separate law called the Trade Expansion Act of 1962. The tariffs on steel and aluminum also rely on Section 232. Read more here. President Donald Trump's tariffs have been deemed illegal and blocked in a landmark trade court ruling that ruled the president used unlawful emergency powers by imposing broad levies on imports. The decision suspends Trump's flat-rate tariffs and key China-focused duties, while leaving some tariffs, specifically those covering steel, aluminum, and some Chinese goods, intact. The ruling, issued by the Court of International Trade, is set to be appealed and could reach the Supreme Court. Investors are watching closely, as the outcome will reshape the global trade landscape and has huge ramifications on trust in Trump as a market manager. Markets, already volatile amid ongoing tariff uncertainty since the April 2 executive order, reacted swiftly to the news with major gauge futures making leaps of up to 2%. Bloomberg reports: Read more here. President Trump on Wednesday criticized an emerging Wall Street trading philosophy in response to his ever-shifting tariff policies. The term "TACO trade" — apparently first coined by the Financial Times early this month — has been flying around Wall Street in recent weeks and entered even more into the public consciousness over the past few days. The acronym stands for "Trump Always Chickens Out." The pattern is clear: Trump announces heavy tariffs, sending markets reeling until he backs off, sending markets flying. A reporter asked Trump at the White House on Wednesday for his response to the school of thought. He did not appear to be aware of the acronym, but was also not pleased to learn its meaning. "Isn't that nice ... I've never heard that," he said, before launching into a defense of recent moves. Earlier in May, the US reached a detente with China after the countries imposed massive tariffs on each other. Then last week, Trump announced massive 50% tariffs on EU imports, only to backtrack a couple days later and push back his deadline for more negotiating time. "After I did what I did, they said, 'We'll meet anytime you want,'" Trump said of the EU. He said of China, "In many ways, I think we really helped China tremendously." "Don't ever say what you said," Trump then told the reporter. "That's a nasty question." AutoZone's (AZO) management said on Tuesday that inflation from tariffs hasn't had a major impact on costs yet because it takes a while for its products to ship to the US. However, executives at the auto parts retailer said they expect inflation to accelerate if substantial tariffs remain in place. "I think one of the reasons that you haven't seen a lot of the tariff cost in our side of the business is ... most of our inventory turns relatively slow compared to many other industries, hard parts in particular," AutoZone CEO Philip Daniele said on the company's fiscal third quarter earnings call. "And that product just hasn't shown up here in the country. And as you know, this stuff has changed pretty significantly over the last 90 days or 120 days. I mean there will be an impact to tariffs on the cost of goods." AutoZone reported SKU inflation of 1% for the quarter and said it expects to see inflation of 3% over time. The company sources many of its products from China and other East Asian countries, Eastern Europe, and Mexico. AutoZone CFO Jamere Jackson noted that, other than tariffs, a lot of the drivers of cost increases have come down, particularly freight prices. "However, if we do see significant tariffs, that will indeed have an inflationary impact," Jackson stated. Reuters reports: German carmakers BMW, Mercedes-Benz and Volkswagen are in talks with the U.S. Department of Commerce on a tariff deal that would involve a mechanism to offset imports and exports, the Handelsblatt business daily reported on Wednesday. In return for tariff relief, the companies could invest billions in the United States, the report said citing company sources. It did not give a more exact sum. Reuters reports: Read more here. Yahoo Finance's senior reporter Hamza Shaban reports on Wall Street's dilemma with Trump's tariffs: Read more here. More retailers are feeling the impact of Trump's tariffs as both Macy's (M) and Michael Kors parent company Capri (CAPR) lowered their annual profit and revenue forecasts on Wednesday, citing tariffs as the cause. Capri cut its revenue forecast for 2026, signaling that tariff-related uncertainty was weighing on demand for its handbags and accessories in North America and Asia. Macy's followed in a similar fashion: Yahoo Finance senior reporter Brooke DiPalma said the company reaffirmed its sales guidance, but revised its earnings outlook due to uncertainty surrounding tariffs, consumer sentiments, and the competitive landscape. Macy's is facing multiple macro headwinds as consumer sentiment sags, costs rise with Trump's tariffs, and trends grow toward e-commerce and direct-to-consumer. Read more here. Reuters reports: Read more here. India has offered steep cuts to its import tariffs on a range of goods in talks with the US, but is said to be retaining high duties on certain agricultural commodities, according to people familiar with the negotiations. The FT reports: Read more here. Reuters reports: Read more here. As the US and European Union negotiate a new trade deal to avoid President Trump-imposed tariffs, it's worth taking a moment to note that the US and the EU have the largest bilateral trade relationship in the world. According to the Council of the European Union (and converted to USD), the transatlantic trade in goods and services topped 1.8 trillion in 2023 after a post-pandemic surge: A measure of tariff revenue has spiked this month as importers paid the baseline "Liberation Day" tariffs that went into effect on April 5, along with other duties set by President Trump. Government receipts for "Customs and Certain Excise Taxes" have already topped $22.3 billion this month, according to Treasury Department data. Yahoo Finance's Ben Werschkul reports: Read more here. Yahoo Finance's Jennifer Schonberger reports: Read more here. Yahoo Finance's Josh Schafer reports: Read more here. The Chinese Premier Li Qiang has urged Southeast Asian and Gulf states to help create a 'big market', in a bid to counter US efforts to isolate China's economy. Bloomberg News reports: Read more here. Reuters reports: Read more here. Retailers, who have suffered under Trump's tariffs, are increasingly warming to offers to sell in order to escape market volatility that has caused company valuations to seesaw in recent months, according to a report in Reuters. Reuters reports: Read more here. Bloomberg News reports: Read more here. Malaysia's Trade and Industry minister Zafrul Aziz said that the US reducing its proposed tariffs on Malaysia to 10% is a positive move, conceding that a previously hoped for levy of zero may not be possible. Bloomberg News reports: Read more here.
Time of India
an hour ago
- Automotive
- Time of India
India is a reliable partner for us amid global challenges, says Schaeffler CEO
Pune: As the geopolitical landscape evolves, marked by tariff tantrums, economic uncertainty, and supply chain disruptions , Germany-based global automotive and industrial supplier, Schaeffler AG , sees India as a reliable partner with significant growth potential worthy of investment. The company has earmarked €100 million (₹900 crore approx, assuming €1 = ₹90) annually for investment in India over the next five years. 'In this geopolitical environment with all the tensions and stress in supply chains, with questions of who you are, and who you are going to be friends with, you need to be careful. I think our relationship with India has proven to be strong. We have always seen reliable partners here,' Klaus Rosenfeld , Global CEO of Schaeffler AG, said at a media roundtable held during his week-long visit to India. On Wednesday, the company inaugurated a new manufacturing plant in Shoolagiri, Tamil Nadu, focused on powertrain, chassis components, and advanced technologies. It also operates plants in Pune, Vadodara, and Hosur, along with three R&D centres. Over the last three years, ₹1,700 crore has been invested to enhance local capabilities. Currently, Schaeffler's business in India generates more than €1 billion in revenue. Rosenfeld further noted that the growth observed in India, along with government initiatives in infrastructure development, digitalisation, and investment in AI, all point in the right direction. Compared to other global markets, India offers a particularly conducive environment for growth. 'This is a friendly environment for us, where we feel that we can do much more,' he said. Globally, Schaefler operates across four main regions: the Americas, Europe, Greater China, and Asia Pacific--a region which is managed from Singapore, chosen for its connectivity and ability to effectively link this diverse and heterogeneous market. However, he emphasised that 'the real place to be' in the region is India. Citing the India-UK Free Trade Agreement as an example, he suggested it could serve as a model for the European Union (EU), adding that he hopes that the EU will 'get its act together' to establish a similarly cooperative relationship. While acknowledging the challenges involved, he emphasised the importance of fostering a friendly and reliable partnership based on win-win outcomes. ICE vs EVs Interestingly, the slower pace of EV adoption does not appear to be a major concern for Rosenfeld. He believes whether electrification happens faster or slower, customers will continue to purchase vehicles– whether they are electrified or internal combustion engine (ICE) cars. This diversity in demand serves as a hedge for consistent growth. He also identified electric two-wheelers as key to India's mobility future. Less common in Germany but essential in India, this segment will see focused investment from the company. Schaeffler is projecting a global automotive landscape in 2030 where ICE vehicles will account for approximately 30 per cent of the market, with hybrid vehicles and battery electric vehicles (BEVs) each making up around 35 per cent. Regional variations will apply as China, for instance, is already ahead of this curve, with BEV adoption significantly higher than the global average. Another hedge against bad times is vehicle lifetime solutions-- services such as repair and maintenance--as they generate consistent revenue, providing stability during economic downturns. 'In bad times, people don't buy cars. They repair cars," he noted. This strategy is reinforced by its 2023 acquisition of KRSV Innovative Auto (Koovers), a Bengaluru-based B2B e-commerce platform providing spare parts solutions to India's aftermarket workshops. Meanwhile, the CEO envisions Schaeffler being recognised as a Motion Technology company and moving beyond the traditional label of an automotive supplier , which he sees as only half the story. "When you consider our core technologies and the breadth of our product portfolio, it's all about motion," he explained. Global markets On global trade tariffs, Rosenfeld noted that we are moving into a multipolar world with the old idea of free trade being clearly challenged. 'For Europe, this is something of a wake-up call. It is ultimately about competitiveness,' he said. Reflecting on the shifting dynamics with China, he added, 'For a long time, Europe and particularly German manufacturers viewed China as a workbench. That perspective has completely changed and the landscape is shifting for global companies like ours.' He believes companies can navigate these changes if they remain open-minded and embrace localisation, which involves real investment in capacity, financial capital, and human capital. On AI, which is fast redefining every domain, he believes, the technology holds significant potential in areas involving transactional tasks, however, large-scale and complex manufacturing processes are unlikely to be fully replaced by AI. In these domains, AI can drive substantial improvements in efficiency and cost-effectiveness, making it a valuable tool for operational optimisation. Meanwhile, Schaefler is also 'carefully looking' at establishing a global capability centre (GCC) in India, further reinforcing the company's long-term commitment to the country.
Miami Herald
an hour ago
- Business
- Miami Herald
Wall Street's TACO trade gains momentum amid stock market rally
Whether you are bullish, bearish, or indifferent, there's one thing every person involved in the stock market hates - volatility. This is true whether you are a seasoned investor who buys to hold stocks and invest in them, or a day trader making dozens of daily transactions. During his second term, President Donald Trump's economy has been defined by volatility. The charts for the S&P 500, Dow Jones, and Nasdaq indexes are starting to look a lot like Bitcoin charts, with wild 700-point swings either way. Related: Donald Trump wants a Golden Dome; this company could win big But swimmers swim, shooters shoot, and investors trade. So, despite the market's current volatility, investors are finding ways to profit from it. While strategies vary, one group of investors relies on a simple mantra to make money and take advantage of the poker face behind the man causing all of the volatility, President Trump. Image source:The new trade sweeping Wall Street is called a "TACO" trade. TACO stands for "Trump Always Chickens Out." The term was reportedly first coined by Financial Times writer Robert Armstrong, who noticed a pattern that could help investors. A TACO trade goes like this: Donald Trump goes on social media and unexpectedly announced a 25% tariff on steel and aluminum imports. Stocks tied to steel and aluminum immediately nosedive, only to reverse course when Trump changes his mind weeks later. More Trump news Hollywood reeling from surprising Trump announcementDonald Trump gives car buyers a lifeline with latest decisionWhite House advisor claps back after Elon Musk takes shot Shrewd investors have noticed this pattern. Just this week, the Dow Jones Industrial Average jumped 700 points after Trump announced that he was extending the deadline for the U.S. and EU to work out a trade deal just days after he announced tariffs were coming. So if Trump announces a big sweeping economic policy, its best not to overreact - because TACO. Trump himself was asked about this phenomenon Wednesday, but he disagreed with the premise. "I've never heard that. You mean because I reduced China from 145 percent that I set down to 100, and then down to another number, and I said you have to open up your whole country?" Trump said. "And because I gave the European Union a 50 percent tariff and they called up and said, 'Please let's meet right now.'" "You call that chickening out?" Trump said, according to The Hill. Stocks have been on fire this week, rallying thanks, in part, to new developments in tariffs. President Donald Trump has said in the past that he loves everything about tariffs. Even the word "tariff" is one of his favorites in the dictionary, he claims. However, his implementation of these import taxes has showcased his love-hate relationship with the concept. On May 26, the president announced extending the deadline to implement 50% tariffs on the EU to July 9 from July 1. This announcement came just three days after Trump initially announced the tariffs. If the U.S. and EU fail to reach an agreement, Bloomberg Economics calculations show that a price hike of more than 0.3% could affect $321 billion worth of U.S.-EU goods trade. Trump has extended deadlines with other trade partners before, and earlier this month, the administration declared its most significant trade victory yet when it announced that it reached an outline for a trade deal with the United Kingdom. Related: UK trade deal gives car buyers a glimpse of what the future holds The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
