The term “TACO trade,” standing for “Trump always chickens out,” originated as a way to describe President Donald Trump’s tariff policies by Financial Times columnist Robert Armstrong. Initially coined to reflect investors’ reactions to Trump’s fluctuating tariff decisions, the acronym quickly gained traction on social media, becoming a popular phrase critiquing Trump’s approach. Memes and AI-generated images depicting the term flooded online platforms, prompting Trump himself to dismiss it as “a nasty question” when confronted by a reporter.

Armstrong explained that the term reflects the notion that the Trump administration backs down from tariffs when faced with economic pressure, hence the “TACO theory.” The acronym gained popularity due to its catchy nature and succinctly captured the essence of Trump’s tariff strategies.

Despite Trump’s dismissive response to the TACO acronym, its relevance resurfaced following the U.S. military’s strikes on Iranian nuclear sites. Some supporters cited the attack as evidence against the “TACO” theory, suggesting that Trump’s decisive actions contradicted the notion that he always retreats from tough stances. However, others speculated whether the bombings were driven in part by a desire to counter the perceived weakness implied by the TACO nickname.

As discussions around the TACO trade continue to evolve in the political landscape, the acronym remains a symbol of the ongoing debate surrounding Trump’s trade policies and decision-making approach.