'It’s called negotiation': Trump bristles at ‘TACO trade’ betting on him backing down

Did President Trump really keep his word on tariffs? Trump dismissed Wall Street's perception that he wouldn't follow through on extreme tariff threats, instead framing his repeated retreats as part of a negotiation strategy. By setting high tariffs initially and then slightly lowering them during talks, he aims to induce trade concessions. Meanwhile, the phenomenon known as "TACO" trade has become a factor in this dynamic—investors reacting to market declines caused by tariff threats, betting that equities will rebound once Trump relents.