Former President Donald Trump is confronting a series of significant challenges as his administration’s aggressive trade policies face legal obstacles and public ridicule. Central to this turmoil is the emergence of the term “TACO”—an acronym for “Trump Always Chickens Out”—which has gained traction among critics and financial analysts to describe Trump’s pattern of retreating from bold tariff threats.
Legal Challenges to Tariff Policies
A pivotal moment occurred when the U.S. Court of International Trade ruled that Trump’s “Liberation Day” tariffs were illegal, stating that the president overstepped his authority by unilaterally imposing tariffs under the International Emergency Economic Powers Act of 1977. The court emphasized that such powers reside with Congress, marking a significant legal setback for Trump’s trade agenda.
This decision has not only undermined Trump’s trade negotiations but also raised concerns about future investment uncertainties, especially if the administration appeals the ruling to the Supreme Court.
The Rise of the ‘TACO’ Acronym
The term “TACO” originated from a Financial Times podcast, where journalist Robert Armstrong coined it to critique Trump’s tendency to announce aggressive tariffs only to later retract them, causing market volatility. The acronym quickly gained popularity, culminating in a reporter questioning Trump about it during a White House press briefing. Trump dismissed the term as a “nasty question,” asserting that his actions were strategic negotiations rather than retreats.
Here’s the full exchange:
CNBC’s Megan Cassella: “Mr. President, Wall Street analysts have coined a new term called the TACO trade. They’re saying Trump Always Chickens Out on your tariff threats, and that’s why markets are higher this week. What’s your response to that?”
“I kick out?” Trump inquired.
“Chicken out,” Cassella repeated.
“Oh, isn’t that — I chicken out. I’ve never heard that,” Trump said, before launching into a rambling explanation of why he is not a barnyard bird. “Six months ago, this country was stone-cold dead. We had a dead country. We had a country — people didn’t think it was going to survive, and you ask a nasty question like that.”
Despite Trump’s dismissal, the term has been widely adopted, with critics and even some political figures using it to highlight perceived inconsistencies in Trump’s trade policies. Memes and social media posts mocking the “TACO” label have proliferated, further amplifying the narrative.
Economic Impacts and Political Fallout
The legal invalidation of the tariffs has had tangible economic repercussions. U.S. manufacturing has shown signs of contraction, with factory activity declining and prices accelerating sharply, partly attributed to the uncertainty surrounding Trump’s trade policies.
Politically, the situation has provided ammunition for Trump’s opponents. Democratic leaders have seized upon the “TACO” narrative to criticize Trump’s economic strategies, with California Governor Gavin Newsom quipping, “It’s raining tacos today,” in reference to the acronym.
Broader Implications
The combination of legal defeats, economic concerns, and public mockery underscores the challenges facing Trump’s administration.
The tide seems to be turning as more and more Americans have the courage to fight back, from individuals to corporations.