Known for branding his rivals with derogatory nicknames, US President Donald Trump appears to have taken offence at how people describe his own economic policies behind his back.
The latest phrase used in financial circles is ‘TACO, ' a tongue-in-cheek abbreviation which describes how Trump handles his tariff policies.
Trump has been widely criticised for his approach to tariffs in recent months, after threatening to implement sweeping tariffs across many of the world’s major economies and markets.
Despite beliefs in some Republican circles that this will be good for the US economy, many Americans are bracing for higher prices across the country.
Trump’s economic approach has also been viewed as pretty volatile, with the president often walking back ideas or quietly changing the course of direction.
So, what does TACO actually mean, and why is Trump upset?
What does TACO stand for?
No, this isn’t about Mexican food - this is about Trump’s trade tirade.
TACO stands for “Trump Always Chickens Out,” an apparent dig at the US president’s flip-flopping on tariffs.
It’s reportedly a term that’s being used by Wall Street traders to describe Trump and his financial decisions, many of which include him threatening to impose tariffs before backing out.
First identified in a Financial Times column, commentator Robert Armstrong described it as “markets realising that the US administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain.”
This has been the case in his approach to Canada and Mexico, as well as his plans to reduce tariffs on China among other trading partners.
In a further blow to Trump’s trade plans, this week a US court blocked his tariff plans by ruling that Trump didn’t have the authority to go above Congress to impose tariffs.
Amid a turbulent trading background, it seems like Trump isn’t too keen on the new moniker.
What did Trump say about TACO?
When a CNBC reporter asked Trump about the acronym on Wednesday, Trump repeatedly branded it a “nasty” question.
“It’s called negotiation,” he maintained. "They wouldn't be over here today negotiating if I didn't put a 50 per cent tariff [on Europe].”
Earlier this year Trump did indeed threaten to implement a 50 per cent tariff on EU goods, after initially threatening to impose a 20 per cent tariff which was later reduced to 10 per cent.
He then extended the negotiation deadline in a screeching U-turn, after a "very nice" call with the EU’s Ursula von der Leyen.
What happens to Trump’s tariffs now?
The TACO trade might be here to stay.
Following the recent US court ruling that blocked Trump’s tariff plan, it’s unclear whether he’ll actually be able to implement some of his plans anyway.
The White House, which has 10 days to halt the tariffs, has already appealed the decision meaning it may escalate to higher courts such as the Supreme Court.
In the meantime, discussions are still underway with a number of trade partners, including the EU, which has until July 9 to reach an agreement.
