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The Journal
3 days ago
- Business
- The Journal
What's the 'Taco trade' talk on Wall Street about that's annoyed Donald Trump so much?
A FEW WEEKS ago a Financial Times journalist coined a phrase which was duly taken up by Wall Street traders, and has since sparked fury from the US President: 'Taco trade' – with 'Taco' meaning Trump Always Chickens Out. When a reporter asked Trump (politely, mind you) what he thought about the phrase, which has found popularity amongst online finance bros, it would be an understatement to say he shot her down. 'Don't ever say what you said. That's a nasty question, to me that's the nastiest question,' he told her. The new trading jargon refers to Trump's now well-established pattern of setting high tariffs on imports from other countries, and then eventually lowering them, or putting a pause on them altogether. In Trump's view, he has never backed down on tariffs. He told the reporter who asked him the question: 'It's called negotiation. If I set a number, if I set a ridiculous high number and I go down a little bit – a little bit…' Basically, he's arguing that his high tariff announcement have put the US in an empowered starting position at the negotiating table with other world powers (and, at one stage, a mostly barren, uninhabited islands home to a group of penguins near the Antartica). It sounds a bit like telling poker opponents your strategy in-depth directly before the game. But has it been working? Most recently the Trump administration's tariff agenda suffered a blow when a federal court in New York ruled that Trump had acted outside the authority of the presidency when he used the 1977 International Emergency Powers Act to impose sweeping tariffs – which are taxes on imports – that applied to goods from almost every country in the world. However, an appeals court then temporarily paused the ruling, giving Trump a short-term win, and it's expected that he will take the case to the Supreme Court if he loses this round. So that's not really an example of Trump chickening out, though there are other precedents. Advertisement Either way, 'Taco trade' is not actually meant as an insult by those using it, though the markets soared when Trump's sweeping tariffs were paused by the courts. Stock market investors are looking at Trump's strategy to try and turn a profit on tariff talk. It works pretty simply: Trump announces tariffs on a country or a bloc, such as the EU; the market dips; investors buy stocks at a cheaper rate; Trump ditches or pauses or lowers the tariffs; the market recovers, and investors sell at a higher price. It worked that way earlier this month when Trump threatened and then, three days later, agreed to delay a 50% tariff on the European Union. After markets fell considerably in reaction to the initial threat, Wall Street rallied on news of Trump's change of hearts. The same thing happened at the start of April, when Trump announced reciprocal tariffs on virtually all of the US's trading partners, and then a week later announced a delay. Market rollercoaster Yesterday, Trump accused China's President Xi Jinping of violating a truce on raised tariffs agreed between the countries two weeks ago, without elaborating on how China had done so. The markets' tariff rollercoaster has even led to Democrats raising concerns about potential insider trading within the Trump administration. 'Who in the administration knew about Trump's latest tariff flipflop ahead of time? Did anyone buy or sell stocks, and profit at the public's expense?' Senator Adam Schiff asked back in April, when the initial delay on reciprocal tariffs was announced. The thing is, all the available polling has shown that Trump's base is unfazed by his moves on tariffs, and that his 2024 voters feel confident about how he is handling the economy. However, voters may be less sanguine if prices rise. Walmart, America's biggest retailer, has warned that it may have to increase prices in response to even the softer tariffs on China agreed this month. Though Trump objects to the 'Taco' acronym, his explanation of what he is doing with tariffs doesn't contradict it. Maybe he's just annoyed because it's catchy. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Yahoo
05-05-2025
- Business
- Yahoo
White House Says 'No Final Decisions' Have Been Made On Film Tariffs After Trump's Comments Rattle Industry
The White House said this morning that 'no final decisions' have been made on whether to impose foreign film tariffs, after Donald Trump said that he was authorizing agencies to pursue 100% levies on movies produced in other countries. 'Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump's directive to safeguard our country's national and economic security while Making Hollywood Great Again,' said White House spokesman Kush Desai. More from Deadline MSNBC's New Daytime Lineup Is A Prelude To Network's Post-Comcast News Division Plans British Film Bodies Plan Urgent Talks With Government Over "Concerning" Trump Tariff Industry Reacts To Trump's "Insane" Movie Tariff Threat: "This Would Destroy The Independent Film Sector" Trump's announcement on Sunday evening rattled the industry, as studios have come to depend on shooting pricey tentpoles in other countries including Canada, Australia and the UK. Trump wrote on Truth Social, 'The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands.' The White House also sent out a list of reports from The New York Times and other outlets on struggling communities in the wake of production flight elsewhere. That has included areas outside of Los Angeles, like New Orleans. The Motion Picture Association has not yet commented on Trump's comments on Sunday, as studio representatives have scrambled to find out more details of the president's plans and how to respond. A spokesman for California Governor Gavin Newsom said, 'We believe he has no authority to impose tariffs under the International Economic Emergency Powers Act, since tariffs are not listed as a remedy under that law.' In fact, movies actually are listed as an exception to presidential authority under the International Emergency Powers Act, which gives the president authority to address threats to national security and the economy. There also has been a great deal of concern over what would happen to streamers, as well as middle and low budget productions. But even though the U.S. film business has a trade surplus, Trump pointed to other countries that have lured jobs away with generous incentives. More to come. Best of Deadline 2025 TV Cancellations: Photo Gallery Brad Pitt's Apple 'F1' Movie: Everything We Know So Far Everything We Know About 'Nine Perfect Strangers' Season 2 So Far
Yahoo
18-04-2025
- Business
- Yahoo
Newsom says he's suing Trump admin to block tariffs, citing harm to California's economy
California Gov. Gavin Newsom and the state's Attorney General Rob Bonta sued President Donald Trump on April 16, seeking an immediate ruling to stop his wide-reaching tariffs, alleging that they're poised to "hurt states, consumers, and businesses." Tariffs have an outsized impact on California businesses, they argued in a news released, including more than 60,000 small business exporters. The tariffs will also affect access to construction materials critical to rebuilding after the Los Angeles fires, they said, including timber, wood, steel, aluminum and key drywall components. Some country-specific tariffs will also impact farmers and ranchers, according to the California leaders. 'President Trump's unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs. We're standing up for American families who can't afford to let the chaos continue,' Newsom said in the release. The lawsuit, filed in the United States District Court for the Northern District of California, requests the court immediately halt the sweeping tariffs imposed by Trump against nations around the world, saying he lacks the authority to impose them through the International Economic Emergency Powers Act unilaterally, and is "creating immediate and irreparable harm to California, the largest economy, manufacturing, and agriculture state in the nation." That act, passed by Congress in 1977, affords a U.S. president a broad set of powers to be used in an emergency, but does not include tariffs as an option, California state officials argued, making Trump's recent actions unlawful.\ During a press conference on April 16, Bonta described Trump's actions as an attempt to override Congress — and thereby 'trampling over his own party" in control of Congress — and 'steamroll' the separation of powers. The filing appears to set the stage for a showdown before the U.S. Supreme Court if necessary. The lawsuit will invoke what's known as the Supreme Court's major questions doctrine. That means "in matters of vast economic and political significance, federal agencies and the executive branch must have clear and specific authorization from Congress." In recent years, California officials noted, the high court has used the standard to strike down major initiatives, including President Barack Obama's Clean Power Plan and President Joe Biden's student loan forgiveness program. More to come?: Trump targeting medicines, semiconductors for tariffs They say it's time to do the same with Trump, arguing he lacks the authority to unilaterally impose tariffs against Mexico, China and Canada or create an across-the-board 10% tariff, and that his use of the International Emergency Powers Act to enact them is "unlawful and unprecedented." "It is difficult to imagine a more economically significant set of actions than the one Trump is taking on tariffs, which have inflicted hundreds of billions of dollars in economic losses on a whim, using a statute that doesn't mention tariffs," the release from Newsom's office said. "The Court, applying this doctrine even-handedly, will find that such expansive action absent congressional approval is a clear violation of the law." Bonta this week argued, 'The President's chaotic and haphazard implementation of tariffs is not only deeply troubling, it's illegal. As the fifth largest economy in the world, California understands global trade policy is not just a game." "Californians are bracing for fallout from the impact of the President's choices — from farmers in the Central Valley, to small businesses in Sacramento, and worried families at the kitchen table," he added. Tired of tariffs already?: White House's 245% tariff figure for some Chinese products causes confusion California's gross domestic product was $3.9 trillion in 2023, state officials say, which is 50% bigger than the nation's next-largest state, Texas. The state also sends over $83 billion more to the federal government than it receives in federal funding, and is the leading agricultural producer in the country. It also has over 36,000 manufacturing firms employing over 1.1 million Californians. Those firms, sometimes spurred by California regulations against harmful products or pollution, have created new industries and supplied the world with goods spanning aerospace, computers and electronics and, most recently, zero-emission vehicles California engaged in nearly $675 billion in two-way trade in 2024, and its economy and workers rely heavily on trade, officials say, particularly with Mexico, Canada, and China — the state's top 3 trade partners. Over 40% of the Golden State's imports come from these countries, totaling $203 billion of more $491 billion in goods imported by California in 2024. The three countries are also the state's top three export destinations, buying nearly $67 billion in California exports, over one-third of the state's $183 billion in exported goods in 2024. Trump has argued that lopsided imports over exports, like those in the Golden State, are a national emergency and security risk. But California officials see it differently. "As the largest economy in the nation, the largest agricultural state, and the largest U.S. trading partner, the harm of the tariffs on California is immense. President Trump's policies have already inflicted hundreds of billions of dollars in economic losses," the governor's office said in its release. The lawsuit comes after Newsom announced a goal for the Golden State to create new strategic trade relationships with international partners. The Coachella Valley, like other areas, depends heavily on Canadian winter residents, so-called snowbirds who own and rent properties and visit to escape cold weather. (This story has been updated with minor phrasing changes.) Janet Wilson is a senior environment reporter for The Desert Sun and co-authors USA Today Climate Point. She can be reached at jwilson@ This article originally appeared on Palm Springs Desert Sun: California Gov. Newsom will sue Trump, seek to stop tariffs
Yahoo
16-04-2025
- Business
- Yahoo
Gavin Newsom Announces California Lawsuit Challenging Donald Trump's Authority To Impose Tariffs
California Governor Gavin Newsom said that he has initiated a lawsuit against Donald Trump's administration challenging the president's authority to impose tariffs. On his podcast posted today, Newsom said that the lawsuit will assert 'that Trump does not have the unilateral authority to impose one of the largest tax increases in history. Impacts of these tariffs are disproportionately being felt here in California, the number one manufacturing state in America.' More from Deadline Netflix Set To Kick Off Earnings Season Well Positioned As Wall Street Weighs Recession Risk Associated Press Seeks New Court Order To Restore Access After Trump White House Excludes All Wire Services From Permanent Pool Slot Most Canadian Thing Ever: Election TV Debate Rescheduled For Hockey Game The state's lawsuit will challenge Trump's triggering of the International Emergency Powers Act to impose the tariffs, arguing that the Constitution gives that authority to Congress. Trump imposed 10% baseline tariffs across the globe, and a 145% tariff on Chinese imports. That has set off a trade war with Beijing, which has responded with a series of its own measures. That includes a rollback in the number of U.S. film releases allowed in the country each year. Mexico, Canada and China were the state's top export markets in 2023, according to the U.S. Department of Commerce. China was the top import market. Newsom is planning a press conference this morning along with Rob Bonta, the state's attorney general. The governor has generally kept a lower profile when it comes to challenging Trump in his initial months in office, as the Newsom has sought federal government help in the recovery from the devastating wildfires. In his first weeks in office, Trump visited the state to survey the devastation, and Newsom greeted him at the airport for what appeared to be a genial conversation. It's expected that an additional federal emergency relief appropriation will need congressional approval, given the scale of the devastation in the Palisades and Altadena. Trump has not yet responded to the lawsuit. Best of Deadline 2025-26 Awards Season Calendar: Dates For Tonys, Emmys, Oscars & More 2025 TV Cancellations: Photo Gallery 'And Just Like That ...' Season 3: Everything We Know So Far
Yahoo
09-04-2025
- Business
- Yahoo
Sen. Wyden grills U.S. trade representative on Trump tariffs: ‘Don't see any strategy'
PORTLAND, Ore. (KOIN) – Oregon Sen. Ron Wyden grilled a U.S. trade representative about the Trump Administration's tariff strategy before the Senate Finance Committee on Tuesday. Last week, President Donald Trump announced sweeping tariffs on foreign countries, including a 10% baseline tax on all imports and even higher rates for certain countries that have tariffs on goods from the U.S. Trial begins for man accused of sexually assaulting 'entirely incoherent' woman on TriMet platform These higher tariffs include a notable 34% tax on imports from China, which imposes a 54% total tariff on the world's second-largest economic powerhouse. The following day, with the same rate of 34%. Trump has since if the country does not comply. This, combined with the 20% tariffs that are already in place against China, would impose a combined tax of 104%. On Tuesday, China threatened to take countermeasures against the U.S. 'to safeguard its own rights and interests' during the developing trade war. Sen. Wyden demanded an explanation from U.S. Trade Representative Jamieson Greer. what the stakes are to have a smart, tough strategy. I don't see any strategy at all. And you really haven't said much about what the strategy is this morning,' Wyden said. In response, Greer said, 'Senator, I appreciate your concern. I wanted to keep having a conversation with you about this, but I see a distinct difference between those countries who have come to us and they said, 'We understand your issues, we understand the deficit, we understand your desire for reciprocity, and we want to work with you on this,' and the Chinese approach, which has been, 'We're going to retaliate.'' What salary do you need to actually take home $100K after taxes in Oregon? The president has been able to impose the tariffs without approval from Congress through the use of the 1977 International Emergency Powers Act, which grants him the authority to regulate economic transactions after declaring a national emergency. Wyden also announced a bipartisan effort to curb the president's trade powers. The resolution — backed by Republican Sen. Rand Paul — would terminate the national emergency Trump declared earlier this year. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
