President Donald Trump reacted sharply on Wednesday when a reporter inquired about a newly coined term, “TACO,” which stands for “Trump Always Chickens Out,” and is used to describe his approach to tariffs.
According to a senior White House official, the President was caught off guard as he had not previously heard the acronym. Trump himself acknowledged this, calling it the “nastiest question” and stating, “I’ve never heard that.” The official explained that Trump initially believed the reporter was directly calling him a “chicken,” leading to his “reasonable” frustration with the phrase.
The acronym “TACO” was reportedly coined in early May by a Financial Times columnist and has gained traction on Wall Street as shorthand to suggest that President Trump’s tariff threats should not be taken too seriously, as he often backs away from implementing them.
Sources familiar with the matter indicated that President Trump also expressed his irritation to his team following the exchange. His frustration stemmed not only from the term itself but also from his team’s failure to inform him about its increasing usage.
This incident provides insight into a potentially sensitive point for President Trump, who appeared to take significant offense at the notion that his tariff adjustments are perceived as a sign of weakness. His immediate response also illustrated his view that the “TACO” acronym trivializes what he considers a crucial negotiating tactic in trade. He explained that he sometimes sets “a ridiculous high number” for tariff rates as an initial position, intending to reduce them if other nations concede to his demands.
An individual familiar with the matter commented, “It clearly bothered him, primarily because it demonstrated a lack of understanding about how he actually utilizes those threats for leverage. But obviously he’s not a guy who looks kindly on weakness, so the idea anyone would think that with respect to his actions isn’t received well.”
The article notes that in the past week alone, President Trump has threatened 50% tariffs on the European Union (later extending the deadline for talks) and has suggested a re-escalation of the trade war with China to ensure compliance with a recent agreement. Additionally, he had previously imposed a 145% tariff on certain Chinese goods, which was later reduced to 30% this month.
The journey of the “TACO” acronym to the Oval Office itself highlights the nature of the current information environment. It originated in a May 2nd column by Robert Armstrong, a Financial Times commentator. Armstrong coined the phrase to capture what he described as President Trump’s frequent tendency to walk back, pause, or create exemptions from his most sweeping tariff threats. His theory was that Trump’s threats initially caused market downturns, followed by surges when he reversed course weeks later, leading to the “Trump Always Chickens Out” theory.
The acronym quickly became a popular joke on finance-related discussions on X (formerly Twitter) and began appearing in client notes from financial analysts and economists. Robert Armstrong himself expressed surprise at the rapid spread of the term, acknowledging the unpredictable nature of social media and media in general.
Armstrong also humorously stated his hope that the acronym would not deter President Trump from backing down on what he considers “bad policy,” emphasizing that “chickening out is good and something to be celebrated” in such cases.
In his exchange with the reporter, President Trump made it clear he preferred a different interpretation of his tariff strategy, asking, “You call that chickening out? It’s called negotiation.”
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