🇺🇸🤠TACO is back on Wall Street—and it’s not about food. The meme acronym “Trump Always Chickens Out” now defines a repeatable trade pattern: markets dip after tariff threats, then rebound as the president softens stance. On May 26, Trump postponed a 50% tariff on EU imports until July 9. The next day, the S&P 500 surged by 2.1%. Same story earlier this month—tariff threats trigger volatility, retractions fuel rallies.

Investors have begun timing this cycle. In 2025 alone, Trump has paused tariff hikes at least three times, each followed by a market rebound. The S&P’s year-to-date chart now visually mirrors TACO cycles: dips aligned with trade war talk, recoveries with political reversals.

Behind the meme is a bigger risk. The U.S. debt burden is ballooning. Moody’s downgraded the country’s credit outlook to “negative” on May 3, citing rising deficits and lack of fiscal discipline. While markets seem to ignore long-term structural issues, their sensitivity may return abruptly.

TACO trades work—until they don’t. The optimism priced into equities today assumes Trump will keep retreating. But what if he doesn’t? Or if global partners lose patience and retaliate? The July 9 deadline looms, with tariffs on both EU and Asian imports set to resume unless formally suspended.

For now, traders play the pattern. But it’s no longer about tariffs—it’s about trust. Each retreat builds a short-term rally. Each delay feeds a narrative that the market can withstand the politics. But history shows: volatility always returns when memes outpace fundamentals.

S&P bulls enjoy the TACO ride. But if policy heat returns in July, fast money may turn into fast exits. Do you believe the meme can survive a real tariff shock?#AMAGE