Is the “TACO trade” already obsolete now that the White House knows about it?

https://www.theatlantic.com/newsletters/archive/2025/05/taco-donald-trump-wall-street-tariffs/682994/

by jonfla

16 comments

  1. Yeah, not sure about the “TACO Trade” idea because now he knows he can never back down from his first position.

  3. That was my first thought. We’re in for it now. We just told Daddy he won’t really hit us.

  4. Be careful if you are leveraging up on every downswing. China isn’t fucking around.

  5. I recommend to everyone to listen to the latest FT Unhedged podcast with Robert Armstrong who is the guy who coined the TACO trade initially. It’s hilarious

  6. If the White House were a rational actor, the idea would be obsolete. However, Trump is going to consistently do this, regardless of whether or not it’s known.

  7. No, because Orange Man will eventually TACO again

  8. The graphic looks like a taco holder to me. Maybe Trump will give us enough tacos to have a party!

  9. Yes.

    Rule number one: if you are aware of the grift and wanna make money on it, you shut the fuck up. Do not ever let a broad audience know how you’re making money.

    The minute TACO trade became a meme boomer networks sunk into is the minute it lost efficacy. They now expect you to do it.

  11. He’s already explained that it’s not chickening out, it’s negotiation.

    I’m sure we haven’t seen the last TACO trade.

  12. No. Once a flip flop bullshitter, always a flip flop bullshitter.

  13. No, the TACO trade would only be dead if Trump were actually self-aware.

    As Bessent said, this is all “strategic ambiguity.”

    Bessent must have been laughing inside when he tried to sell that dollop with a straight face.

  15. I don’t think so and here is why.

    Will trump claim he is going to push huge tariffs on counties? Likely yes. We just say the metal tariffs.

    If he does a blanket tariff like 50% on China or the EU will that have a big negative effect on the economy, bonds, and markets? Likely yes.

    So if both of those are likely yes then will he back off after doing them because of pressure from the ultra rich? Imo also likely yes. He reportedly is semi terrified of causing a recession but his brain only thinks that’s a thing if the market crashes.

    That’s the definition of the TACO trade.

  16. I think after trump blurted out his strategy, it’s over for him.

    What he does is a negotiation tactic. Well, now the rest of the world knows and they’ll know how to deal with him.

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