Trump Claps Back at TACO's Taunts, Gives Defense of Tariff Approach
Key Highlights:
* Trump rebuffs accusations that he caves on tariff threats, labeling them "nasty questions."
* Wall Street's nickname "TACO"—'Trump"' Always Chickens' Out'—generates new controversy.
* He asserts rollbacks of tariffs as part of a deliberate strategy, not a sign of weakness.
Wall Street coined "TACO trade" to describe Trump's tendency to announce aggressive tariffs and backtrack. When asked about it, Trump lashed out at a reporter, calling the question "nasty".
He defended his tariff reversals as negotiation tactics rather than weakness. Despite his frustration, investors continue to profit from the predictable pattern.
Asked point-blank, he fired back, defending his negotiating style and decrying the question as deliberately inflammatory.
Negotiation or Retreat?
Trump counters that his critics' term "backing down" is shrewd bargaining. He cited an example: imposing sky-high tariffs initially, then rolling them back after securing leverage.
Scaling back from 145% to 30% wasn't retreating for him—it was planned. His argument? Begin tough to pummel your adversaries, then negotiate once deals are in play.
Traders Watching Closely
Investors have developed a pattern. Markets tank when Trump threatens tariffs strongly, then recover when he backs off. It's become so predictable that some traders now wager on the backtrack.
However, Trump asserts there is nothing accidental to it—just deliberate moves in high-stakes trade. Whether others view strategy or bumble, he's following his script.
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