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.
Has the TACO trade worked? According to Sevens Report, “yes.” The analysts note that the TACO trade thesis is simple: buy the Trump tariff dip. Trump’s history shows he rarely follows through on extreme tariff threats, so market sell-offs tend to reverse. The
S&P 500 rose 2% after the March 4 tariffs on Canada, Mexico, and China. To read the full article from Street Insider on 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?
👉 Start your quarterly subscription here: click here.
