Latest news with #Taco
Yahoo
11 hours ago
- Business
- Yahoo
‘Trump always chickens out': Taco jibe ruffles president's feathers
Trump Always Chickens Out – or Taco for short. Investors like narratives to explain the financial world, and they appear to have seized on this one: whenever Donald Trump faces a market backlash, he will back down. It would be fair to say the US president did not take kindly to the suggestion that he was being a 'chicken' when asked by a reporter at the White House about the term that is gaining traction on Wall Street. 'Oh isn't that nice – 'I chicken out.' I've never heard that,' Trump mused on Wednesday in response to the reporter's question on the so-called Taco trade. He then launched into extended comments on how high the tariffs he imposed on China were, and how he had 'helped' China by cutting them. 'But don't ever say what you said,' he added to the reporter. 'That's a nasty question.' Apparently riled, he later returned to the theme, insisting that he was no chicken, and that often people accused him of being too tough. But recurrent retreats by Trump have become the basis for stock markets rebounding after falls, even as the US president has raised tariffs to their highest level in more than a century. The S&P 500, the US stock market benchmark, has gained about 1% during 2025, despite a deep slump in April as Trump announced 'liberation day' tariffs on trade with most countries in the world. The stock market rise appears to have been aided by the Taco trade narrative: that market turmoil will correct the president's course and allow companies to keep on making strong profits. That belief will strengthen if courts uphold Wednesday night's ruling by New York's court of international trade that Trump's tariffs have been imposed illegally. When the Financial Times columnist Robert Armstrong coined the Taco acronym on 2 May, it was a pithy observation of market reaction to Trump's chaotic policymaking. However, less than a month on, one question is whether being accused of being 'chicken' will needle the president to take a harder line with trading partners. On some fronts – notably on transporting people to El Salvador without due process – the Trump administration has indeed defied barrages of criticism and several court orders. Yet on financial markets, the pattern is clear of a harsh initial position followed by a sizeable retreat. The partial climbdowns have often followed close behind slumping bond prices – increasing US government borrowing costs – a dynamic that could expose the world's largest economy if left unchecked. The liberation day tariff announcement was followed by a 90-day pause. Trump said he would raise EU tariffs to 50%, before delaying that until 9 July. He ratcheted up levies to a punitive 145% on China, before dropping them to 30% during a 90-day pause. And he toyed with forcing out the Federal Reserve chair, Jerome Powell, only to backtrack quickly once investor displeasure became clear. However, the market optimism has not matched economic forecasts, which suggest that the White House's actions are still historically significant. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Independent
a day ago
- Business
- Irish Independent
The Irish Independent's View: Donald Trump's tariff woes may turn into Europe's golden opportunity
Were he to do so, a quote from Julius Caesar about 'a tide in the affairs of man' and how 'we must take the current when it serves, Or lose our ventures' seems pertinent. Portentous events within the US courts, and in his own political circle, should give pause for thought. The ruling putting a brake on his 'Liberation Day' tariff wall is a setback, no matter what Republicans say. The sudden departure of the world's richest man, Elon Musk, from his court of invincibles has suddenly introduced a sense of vulnerability to the administration. Insiders played down the implications of the tariffs block being turned around on appeal. 'If anybody thinks this caught the administration by surprise, think again,' trade adviser Peter Navarro said. But the timing is fortuitous, to say the least, for the EU, as it goes eyeball to eyeball in a crucial stage of crunch trade talks with Trump. Brussels is in a desperate race to avoid a 50pc general tariff that the president threatened. However, a 'very nice' call with European Commission president Ursula von der Leyen has secured a stay on this until July 9. The finding by the US Court of International Trade that the president had exceeded his authority in invoking the International Emergency Economic Powers Act as a basis for imposing draconian levies is a blow. ADVERTISEMENT Analysts feel the impact may be limited for the trade talks, given the other tariff options available. However, the court's insistence that the US constitution confers on Congress exclusive powers to regulate commerce with other nations, and therefore could not be over-ridden by the president, may embolden countries to hold out, at the very least, until there is greater clarity. As noted by Letitia James, the attorney general of New York, one of 12 states involved in the lawsuit: 'The law is clear: no president has the power to single-handedly raise taxes whenever they like.' The tariffs saga is likely to have many more twists and turns, as illustrated by the US federal appeals court decision last night to temporarily reinstate the tariffs. Trump has bristled at the latest 'Taco' label he has been tagged with (Trump always chickens out) when the markets put the heat on, but there is enough truth in it to encourage some to be defiant. Brussels has been given another card to play, and it would be naive not to. Kowtowing can only result in more volatility as Trump will surely up the ante. If the bloc is to be taken seriously as a player on the world stage, it must flex some financial muscle. The departure of Elon Musk also suggests there may be some blood in the water. Quitting only a day after slamming Trump's landmark 'big beautiful bill' for undermining spending cuts suggests division in the ranks. Trump's difficulty could be the EU's opportunity.
Yahoo
2 days ago
- General
- Yahoo
Fact Check: Fake footage of massive 'TACO' skywriting over Mar-a-Lago likely AI-generated
Claim: Authentic footage from May 2025 depicts the word "TACO" spelled out in the sky above Trump's Florida residence, Mar-a-Lago. Rating: On May 29, 2025, footage allegedly showing the word "TACO" spelled out in contrail vapor above U.S. President Donald Trump's residence in Florida, Mar-a-Lago, circulated the internet. The video spread across multiple platforms, including X (archived), TikTok (archived), Facebook (archived), Instagram Threads (archived) and YouTube. The first post of the video (archived) appeared on X account @SkylineReport, where it garnered more than 1 million views, as of this writing. We were unable to reach the account's owner for comment. Investors began popularizing the term "TACO" ("Trump Always Chickens Out") to characterize claims that whenever Trump faces a market backlash, he will back down. Although several users in the comments appeared to believe that the video was authentic, the footage was fake — and likely AI-generated. First, Google search results of the terms "Trump," "Taco," and "above 'Mar-a-Lago'" yielded no results pertaining to the footage from any reputable news outlet. The results only related to Trump's response to reporters' questions about the term as well as unverified social media posts of the video or similar claims in question. ( Second, there were indications in the video itself of AI-generation. Jet engine vapor trails form letters out of condensation, but an aircraft does not appear in the video until the very end, when it spontaneously appears next to the letter "O" approximately four seconds into the video. If the video were authentic, the aircraft would be visible throughout the video. The video shows dozens of people on the ground beneath the letters. If the footage were authentic, individual social media users would have posted their own footage. Rather, the only footage on the internet is from one angle. The fake footage also depicts a distinctly long building beneath the letters supposedly on the Mar-a-Lago property, but Google Earth imagery of Mar-a-Lago does not appear to show any such building. (Google Earth) Lastly, we ran a screenshot of the video through AI-detection software Hive, and the results were 99.9% likely to be AI-generated. ( Fact Check: FAKE Video Shows 'TACO' in the Sky Over Mar-a-Lago | Lead Stories. 30 May 2025, Accessed 30 May 2025. Jolly, Jasper. '"Trump Always Chickens out": Taco Jibe Ruffles President's Feathers'. The Guardian, 29 May 2025. The Guardian,
Yahoo
2 days ago
- Business
- Yahoo
Trump tariffs: How much spice is behind the TACO trade
No, it's not burrito bowls on investors' minds after a whirlwind week for President Trump's tariff policies. The TACO trade — which stands for "Trump always chickens out" — is taking Wall Street by storm, characterized by the administration's constant back-and-forth on its import taxes levied against trade partners and other countries. Yahoo Finance senior columnist Rick Newman comes on Market Domination to talk more about this viral take. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. So the talk on Wall Street this week was all about the Taco trade, but Yahoo Finance senior columnist Rick Newman has his own take that the premise of the Taco trade isn't true. And Rick joins me now. How so, Rick? I'm sorry, guys. So if you said Trump sometimes chickens out, you'd be right. But you can but the Tisco trade it just I mean, it does not it doesn't work, right? I mean, look, I love the memes. I love the Trump in the chicken suit with the feathers, uh, the tacos on his gold jacket and stuff. But I mean, I'm He didn't look happy to be asked that question. He did not enjoy that question. He hated the question. He did not enjoy that question, which made it even more fun, to be honest. But look, I mean, I mean, I've been following every step of the way here. Um, Trump is, uh, at the end of the day, we're going to end up with tariffs on imports, taxes on imports that are going to be something like six times, eight eight times or 10 times higher than when Trump took office. So where we stand right now, worth reminding people, Trump took office with the average tariff on imports at 2.5%. It's now around 18%. That is with these emergency tariffs in place. We now know that there's some question legally about whether those will stand. The Supreme Court is going to decide that. But if the if the courts do end up shooting down all those emergency tariffs, Trump's got at least four other ways that he can impose these tariffs. He did some of them in 2018 and 2019. So we know they're likely to be more durable legally. And Trump is going to do it. I mean, people who know Trump, I mean, if you haven't been paying attention, Trump is a true believer in tariffs despite all the evidence that's going to make the economy worse off on it. He is going to do it. He's going to find a way to do it. So Trump sometimes chickens out, but he does not always chicken out. What do you make of the market response to all this? In essence, we're about to wrap up what was a solid month for stocks, right? And a big rebound off the April low. Even the bond market, we were talking earlier, it's taken a deep breath. It's calmed a bit. The benchmark benchmark tenure is back to 44. What do you make of that? Uh, Trump lowered the chair the type China tariffs from 145% to 30%. That's the answer, right? He he didn't. He he didn't. Because if he if he if he didn't completely chicken out, if he would if he did, he would have he would have taken it from 145% back to no additional tariffs. But so that's where we are. We went from started with no there were already tariffs on Chinese imports, but the new ones are 30% right now. Trump went from 145% to 30%. So that is that is that represents the whole strategy, which is he starts out super high and ends up somewhere that's not as bad, but still somewhat uncomfortable. Rick, thank you. I always appreciate it. Bye, guys. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
2 days ago
- Business
- The Star
Taco trade? US leader challenges claim that ‘Trump always chickens out' in talks
US President Donald Trump pushed back Wednesday on a new acronym making the Wall Street rounds to describe a way to profit from his fitful negotiating style, Taco, short for 'Trump always chickens out'. Trump, who was evidently not aware of the term when asked about it in the Oval Office by a reporter, responded with equal parts sarcasm and indignation. The Taco trade refers to an investment strategy that benefits from the rise in share prices after the US president relents. 'Oh, isn't that nice. I've never heard that,' he said, referring to the term first coined by a Financial Times columnist. 'You mean because I reduced China from the 145 per cent that I said, down to 100, and then down to another number, and I said you have to open up your whole country?' 'And because I gave the European Union a 50 per cent tax tariff and they called up and they said, 'Please let's meet right now, please let's meet right now,'' he added. 'You call that chickening out?' Trump then asked rhetorically whether it would be better if he instead maintained tariff levels 'at a ridiculous high' like 145 per cent tariff imposed on China. 'We were doing no business because of the tariff, because it was so high. I knew that,' he said. 'It's called negotiation!' The former real estate developer then offered evidence that his rapid-fire negotiating style – which has paralysed companies, stymied consumers and roiled global markets – was working. He pointed to trillions of dollars in investments that countries in the Middle East pledged on his recent visit to that region. As he has in the past, Trump slammed the reporter, Megan Casella of CNBC, who asked the question: 'Don't ever say what you said,' the former reality show host said. 'That's a nasty question. To me, that's the nastiest question.' Analysts said use of the acronym could backfire if the president, fearful of looking weak, maintains exorbitant tariffs with China and others without relenting, further destabilising the global economy. 'Because President Trump believes himself to be a singularly skilled deal maker, he is sensitive to any suggestion that foreign counterparts are outmanoeuvring, even manipulating him, especially when it comes from one of the constituencies to which he pays closest attention: analysts on Wall Street,' said Ali Wyne of the International Crisis Group, a Belgium-headquartered think tank. 'He does not want to be seen as bending to President Xi Jinping,' Wyne added. 'Nor, however, does he want to face the political and economic fallout of an indefinite trade escalation with a strategic competitor that is far more capable of retaliating than when he first assumed the presidency.' The publicity could also undercut Wall Street's ability to profit on the 'taco trade' as the stock-rebound pattern becomes more apparent. 'The first rule of the taco trade is that you don't tell Trump about the taco trade,' said Peter Berezin of BCA Research, a Canada-based market research company. Investors have pointed to a pattern behind the Taco reference. Trump imposed 'reciprocal' tariffs on dozens of countries of up to 50 per cent on April 2, which he dubbed 'Liberation Day', before announcing a 90-day reprieve a week later during which the tariffs would be lowered to 10 per cent. He hit Chinese imports with successive waves of tariffs in April that eventually reached 145 per cent – prompting Beijing to respond with " title="" target="_self">125 per cent levies of its own – before dropping them to 30 per cent Even before US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng sat down in Geneva to negotiate a tariff truce between their countries on May 10 and 11, Trump signalled he would accept a much lower level, indicating that 80 per cent 'seems right', leading analysts to suggest he was negotiating against himself. On Canadian goods, he threatened to impose 25 per cent tariffs, including on steel and aluminium, before announcing a one-month pause. And last week, he threatened to impose a 50 per cent tariff on the EU starting in June before announcing days later that he planned to delay the taxes until July 9, giving more time for the two sides to negotiate. 'These retreats are so frequent that investors should rationally expect them,' wrote Paul Donovan of UBS, a Switzerland-based bank, as stocks in Europe jumped on Monday. Tuesday, with US markets open again after a holiday, the S&P 500 saw its biggest increase in weeks, prompting Chris Beauchamp of IG Group, an online trading company, to observe: 'Taco trade triumphs once again.' Later on Wednesday after the Oval Office press conference, Trump reflected on the EU tariffs. 'They will say, 'Oh he was chicken, he was chicken, that's so unbelievable,'' the president said. 'I usually have the opposite problem. They say I am too tough.' Trump administration officials have framed his mercurial approach as a way to maximise leverage and force other countries to come to the negotiating table. But as the taco comment suggests, some investors have started to expect the president to back down on his more significant threats. Speaking later on CNBC, Casella said 'Wall Street loves an acronym', adding that 'the idea here is just that, yes, the markets will go down when he makes a threat, only to rebound, often even higher, once the threat is off the table'. As for Trump calling her question 'nasty', Casella said it was 'a badge of honour, I guess'. - South China Morning Post
