According to market insiders, President Trump is once again exhibiting a pattern of behavior that has come to be known as "TACO" - or "Trump Always Chickens Out." This term was coined after Trump backed down on tariffs he had imposed earlier, causing a significant market dip.
In recent days, the president claimed to have reached a framework for a future deal with respect to Greenland, potentially involving US sovereignty over new military bases. He then suddenly announced that he would be backing away from imposing tariffs on Europe, citing the potential for the Greenland plan as the reason. The news sparked a surge in stock markets, including the Dow Jones, which had been under pressure due to Trump's ongoing threats.
The TACO pattern suggests that whenever market volatility arises, Trump tends to retreat rather than take bold action. According to economists, this behavior can be seen as both a positive and negative phenomenon. On one hand, it prevents more drastic measures from being taken, potentially averting catastrophic consequences. However, it also means that markets are less likely to react strongly in the first place, thereby rendering Trump's signals less effective.
This TACO cycle could lead to an ongoing pattern of Trump making incremental moves towards a potentially volatile decision before backing down due to market pressure.
In recent days, the president claimed to have reached a framework for a future deal with respect to Greenland, potentially involving US sovereignty over new military bases. He then suddenly announced that he would be backing away from imposing tariffs on Europe, citing the potential for the Greenland plan as the reason. The news sparked a surge in stock markets, including the Dow Jones, which had been under pressure due to Trump's ongoing threats.
The TACO pattern suggests that whenever market volatility arises, Trump tends to retreat rather than take bold action. According to economists, this behavior can be seen as both a positive and negative phenomenon. On one hand, it prevents more drastic measures from being taken, potentially averting catastrophic consequences. However, it also means that markets are less likely to react strongly in the first place, thereby rendering Trump's signals less effective.
This TACO cycle could lead to an ongoing pattern of Trump making incremental moves towards a potentially volatile decision before backing down due to market pressure.