Coined by Financial Times columnist Robert Armstrong in early 2025, it was originally used by Wall Street traders to describe a specific pattern: President Trump would announce massive tariffs, the markets would tank, and then he would "chicken out" (delay or reduce the tariffs) to settle the markets.
Here is why this specific piece of sarcasm can be both brilliant and self-defeating:
When it works (The "Scalpel")
It exposes a pattern: It moves the conversation from a single event to a predictable behavior. It suggests that the "chaos" is actually a loop that can be gamed for profit (the "TACO trade").
It hits a nerve: Because the acronym suggests weakness"a trait the President actively distances himself from"it is rhetorically effective. His visible frustration when asked about it in the Oval Office proved that the sarcasm "landed."
It's catchy: Like all good political branding, it's simple, memorable, and turns a complex economic policy into a punchy joke.
How it becomes self-defeating (The "Sledgehammer")
It can incentivize the behavior you fear: As Robert Armstrong himself noted, there is a risk that by mocking a leader for "chickening out," you might inadvertently goad them into not backing down next time just to prove the critics wrong. If "chickening out" actually prevents an economic crisis, mocking the retreat might make the next crisis more likely.
The "Boy Who Cried Wolf" effect: If critics use "TACOing" to describe every single policy shift, they risk becoming complacent. It creates a narrative that "he'll never actually do it," which can lead to a lack of preparedness if or when a policy is actually fully implemented.
Misunderstanding "Negotiation": To his supporters, what critics call "TACOing" is viewed as "The Art of the Deal""starting with an extreme position to move the needle. By using a sarcastic acronym, critics may fail to engage with the actual strategy being used, making their critique feel "out of touch" to half the country.
Ruining Actual Tacos: Now you have to think of Trump every time you put a taco in your mouth.
