When the world passes through several waves of tariffs threatening US President Donald Trump, Wall Street has a new word for the leader who let him rattle.
The new motto concerned is “Taco Trade” – a term that Donald Trump was angry about. The word taco means “Trump always chickens”.
Here’s what a Taco store actually means.
What is Taco Trade?
The term Taco (always chickens) was created by Robert Armstrong, a publicist of the Financial Times. He first used the word to describe the recurring formula in the US President’s business strategy.
The TACO store refers to Trump’s signature cycle of threat to deposit extensive tariffs and then “climb” to change them or postpone their implementation.
For example, April 2 Donald Trump threatened to save new tariffs on almost every country in the world, including 26 % of Indian imports. Seven days later, however, he decided to suspend these tariffs for 90 days to work on business agreements instead after the markets seriously crashed and the Republican President faced severe resistance.
How does Taco Trade work?
TACO trade usually works in this cycle:
Tariff threat: The first step, Donald Trump threatens high tariffs or aggressive business policies, causing a worldwide response.
Market response: Investors respond to the uncertainty of threats and markets with falling, especially shares associated with global trade.
Trump Backants: Donald Trump speaks to the country or company in question and finds a solution to retreat or suspend.
Markets are reflected: markets pass through the assembly after investors predict the formula and buy stocks at lower prices.
Taco store has Donald Trump angry
Donakd Trump was visibly offended when he asked about the phrase on Wednesday and rejected the idea that he would “burn” and identified the reporter’s “ugly” investigation.
“Do you call it Chickening? It is called negotiations,” Trump said, adding that he would set “a ridiculous high number and go a little down, you know a little, a little” until the character is more sensible.
Trump prevented its approach to raising tariff rates to 145 percent to Chinese goods just to negotiate back to 30 percent for 90 days.
Similarly, last week, he threatened to impose a 50 % tax on the European Union goods since June, only to postpone the increase in the customs goal until July 9 so that it could be negotiated, while the basic 10 % tariff would continue to be charged.
(Tagstotranslate) Trump
