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‘TACO Trade’: What to know about the term Donald Trump doesn’t want to hear again

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The term “TACO trade” took off across most media platforms on Wednesday, and if you are just now catching up and wondering what that’s all about … well, it doesn’t have a thing to do with Taco Bell.

It does have everything to do with President Donald Trump and his on-again, off-again tariff policies. And Trump is not too happy to hear it.

“But the Trump tariff dip,” Tom Essaye of the Sevens Report said. “Essentially, Trump has proven to investors that he won’t actually follow through with draconian tariffs. As such, any sell-off following a dramatic tariff threat should be bought.”

Trump was asked about the term on Wednesday, and he claimed it was the first time he had heard of it. He also, clearly, did not appreciate it.
To read the full article from Penn Live from May 29, 2025 click here.

TACO Trump goes viral, as analyst confirms the US President does ‘chicken out’

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It didn’t take long for social media to jump on to US President Donald Trump’s latest, unedifying nickname.

Earlier this month, Financial Times columnist Robert Armstrong coined an acronym to describe a popular trading strategy centered around Trump’s start-and-stop tariff policies – TACO (Trump Always Chickens Out).

So does Trump always chicken out?

According to a note to subscribers on Thursday from respected Wall Street market analyst Tom Essaye, the answer is yes.

In the note, the Sevens Report Research founder pointed to Trump’s decision to exempt goods subject to the US-Mexico-Canada Agreement from additional tariffs on Mexico and Canada, significantly reducing their sting. To read the full article on The New Daily from May 29, 2025 click here.

Get access to the full Sevens Report issue on this topic—plus two weeks of free, no-obligation market insights built for advisors. 📩 Start your trial here: click here.

Advisors at top firms like Morgan Stanley, Merrill, Wells Fargo, and Raymond James already subscribe. Ready to see why?
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Trump pushes back on characterization of ‘TACO’ strategy: ‘It’s called negotiation’

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President Donald Trump pushed back on Wednesday on the characterization of his tariff policy as “chickening out” after he announced and then paused tariffs on other countries multiple times.

Trump objected to the description when asked by a reporter, saying it was part of his wider strategy.

Announcements of trade deals, tariff deadline extensions, and the lowering of tariffs all helped contribute to a market revival after an initial crash. The market has now regained most of its value, partially due to the TACO strategy.

“So, the returns are somewhat conclusive: The TACO trade has worked and buying stocks on extreme tariff-related threats has worked,” Tom Essaye, founder of Sevens Report Research, said, according to Market Watch. To read the full piece on Washington Examiner, from May 28, 2025, click here.

Get access to the full Sevens Report issue on this topic—plus two weeks of free, no-obligation market insights built for advisors. 📩 Start your trial here: click here.

Advisors at top firms like Morgan Stanley, Merrill, Wells Fargo, and Raymond James already subscribe. Ready to see why?
👉 Start your quarterly subscription here: click here.

 

Why the ’TACO Trade’ still matters for your portfolio

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Investing.com — Over the past 48 hours, the term ‘TACO Trade’ has been widely circulated on social media and even made it to the White House. TACO is an acronym for “Trump Always Chickens Out”, which suggests that despite his tough talk on tariffs, he will always back down in the end.

Trump was asked about the TACO trade on Wednesday, enraging the President. “… don’t ever say – what you said, that’s a nasty question,” Trump slapped back when asked about it.

The TACO trade is the new Trump trade. Here’s what to know about the meme ruling the stock market.

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  • A new acronym is making its rounds on Wall Street: TACO
  • “Trump Always Chickens Out” refers to markets betting on Trump walking back tariff proposals.
  • Trump called the TACO moniker “nasty” when asked about it on Wednesday.

With TACO, investors have a new guiding principle.

“Buy the Trump tariff dip. Essentially, Trump has proven to investors that he won’t actually follow through with draconian tariffs,” Tom Essaye of the Sevens Report wrote on Wednesday. “As such, any sell-off following a dramatic tariff threat should be bought.”

Retail investors have adopted the strategy, with dip-buying at historic levels recently. But how long the TACO trade will remain effective depends on what happens after the tariff delays unwind over the summer.

Click here to view the full article in MSN.com from May 29, 2025.

Get access to the full Sevens Report issue on this topic—plus two weeks of free, no-obligation market insights built for advisors. 📩 Start your trial here: click here.

Advisors at top firms like Morgan Stanley, Merrill, Wells Fargo, and Raymond James already subscribe. Ready to see why?
👉 Start your quarterly subscription here: click here.

Trump Branded With Embarrassing Nickname Over Tariff Confusion

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Wall Street is beginning to understand the president’s roller-coaster foreign trade decisions with the help of a trendy acronym: TACO—or “Trump Always Chickens Out.”

The TACO theory was coined earlier this month by Financial Times columnist Robert Armstrong, adding a catchy name to the practice of loading up on stocks when Donald Trump first announces the tariffs and then selling when he ultimately backtracks on enforcing them.

In a Wednesday note obtained by Market Watch, Sevens Report Research founder Tom Essaye insisted that Trump does, in fact, always chicken out. So far, that’s been true for enacting additional tariffs on Mexico and Canada, postponing his “reciprocal” tariff plan on dozens of countries after his “Liberation Day” announcement went south, delaying a tariff on imports from the European Union, and smashing his plan to fine China, temporarily decreasing tariffs on Chinese products to 30 percent from 145 percent. Click here to view the full article in The New Republic on May 28, 2025.

Get access to the full Sevens Report issue on this topic—plus two weeks of free, no-obligation market insights built for advisors. 📩 Start your trial here: click here.

Advisors at top firms like Morgan Stanley, Merrill, Wells Fargo, and Raymond James already subscribe. Ready to see why?
👉 Start your quarterly subscription here: click here.

The ‘Trump always chickens out’ trade is the talk of Wall Street. Here’s one way to play it.

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Tariff threats may still offer near-term opportunity but won’t determine market’s next big move, strategist says.

Let’s hear it for the TACO trade.

Wall Street loves a catchy acronym, and the TACO trade, coined earlier this month by Financial Times columnist Robert Armstrong, has captured the mood as investors and analysts attempt to make sense of the roller-coaster market action that has followed President Donald Trump’s sweeping tariff threats and subsequent walk-backs.

It stands for “Trump always chickens out.” The idea is that investors have profited by buying the dip that has followed Trump’s tariff threats. Does Trump always chicken out on his tariff threats? So far, the answer is yes, said Tom Essaye, founder of Sevens Report Research, in a Wednesday note. Click here to view the full article featured in MarketWatch, published on May 28, 2025.

Get access to the full Sevens Report issue on this topic—plus two weeks of free, no-obligation market insights built for advisors.
📩 Start your trial here: click here.

Advisors at top firms like Morgan Stanley, Merrill, Wells Fargo, and Raymond James already subscribe. Ready to see why?
👉 Start your quarterly subscription here: click here.