Deutsche Bank Boosts U.S. Stocks as Trump’s ‘TACO’ Pattern Takes Hold
Tom Essaye explains how tariff walk-backs continue to drive market optimism
Deutsche Bank Upgrades U.S. Stock Rating On Trump’s Tariff ‘Relents’—As ‘TACO’ Trump Gains Popularity
INVESTORS LEAN INTO THE ‘TRUMP ALWAYS CHICKENS OUT’ TRADE
With markets climbing and tariff anxiety easing, Deutsche Bank has upgraded U.S. equities—citing growing confidence that Trump’s tariff threats won’t stick.
This narrative has been labeled the “TACO” trade—short for “Trump Always Chickens Out.” The term, popularized by Financial Times columnist Robert Armstrong, is gaining traction across Wall Street.
“The trade is based on the idea that Trump makes an outlandish and significant tariff proposal… but within days backtracks or waters it down.”
— Tom Essaye, Sevens Report
According to Essaye, Trump has followed this pattern repeatedly, relenting enough to blunt the economic impact of each threat.
“Trump has always chickened out so far.”
With the TACO dynamic priced in, investors are increasingly treating tariff threats as noise, not policy—fueling bullish sentiment in the process.
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