Trump Responds to TACO Trade Criticism: “You Call That Chickening Out?”
President Defends Tariff Strategy Amid Controversy
On May 28, 2025, President Trump expressed his frustration when questioned about a new term coined by the Financial Times. The term referred to his tariff strategy as the “TACO trade,” which stands for “Trump Always Chickens Out.” During a press interaction in the Oval Office, Trump dismissed the characterization and defended his approach to trade negotiations. His response emphasized that TACO trade and Trump’s tariff strategy were misunderstood and not representative of his true intentions.
A Heated Exchange
When a reporter brought up the TACO trade term, Trump reacted strongly, stating, “I’ve never heard that. You mean because I reduced China from 145 percent that I set down to 100, and then down to another number, and I said you have to open up your whole country?” He continued to assert that his actions were not indicative of backing down. The TACO trade and Trump’s tariff strategy were intertwined with his method, as he asked rhetorically, “You call that chickening out?”
Highlighting Achievements
In his defense, Trump highlighted the significant investments pledged by Middle Eastern countries during his recent diplomatic trip. He framed his fluctuating tariff threats as a strategic negotiating tactic and claimed that TACO trade and Trump’s tariff strategy were aligned with his broader diplomatic efforts. He emphasized the effectiveness of his approach, stating, “That’s a nasty question. To me, that’s the nastiest question.”
Recent Tariff Actions
The president’s tariff strategy has been marked by a series of threats followed by delays or reductions. In early February, he threatened tariffs on Mexico and Canada but postponed their implementation. On April 2, he announced reciprocal tariffs on numerous nations. However, he granted a 90-day reprieve shortly after, reducing the tariffs to 10 percent. TACO trade and Trump’s tariff strategy, therefore, appear as calculated maneuvers within Trump’s complex trade policy.
Most recently, Trump indicated plans to impose a 50 percent tariff on the European Union starting in June. Yet, he later announced a delay until July 9 to facilitate ongoing negotiations.
Investor Reactions
While administration officials have framed Trump’s approach as a means to engage other countries in negotiations, the emergence of the TACO trade term reflects growing skepticism among investors. Many now anticipate that the president may ultimately retract some of his more aggressive tariff threats as part of TACO trade and Trump’s tariff strategy.
As the situation develops, it remains to be seen how Trump’s trade policies will evolve. Additionally, the impact they will have on international relations and the global economy is uncertain.
