US President Donald Trump has pushed back violently today to questions about his administration’s changing tariff strategy, the new nickname to laugh at the “taco trade.” The term coined by a columnist in the Financial Times isTrump always drives out chickens“It emphasizes the pattern of high tariffs being announced.
President Trump today bristled questions about “taco trade” – shorthand for “Trump Always Drops Chickens” – Wall Street is increasingly betting that he will return to tariff threats: https://t.co/i1qyf0nzuj
– Jennifer A. Dlouhy (@jendlouhyhc) May 28, 2025
Trump will delay 50% EU tariffs until July 9th after von der Leyen’s request. Market gathering
Trump’s recent trade measures had proposed a 50% tariff on goods from the European Union. The obligation was originally scheduled to begin on June 1, but has now been postponed until July 9. The delay came after a request from President Ursula von der Reyen of the European Commission. Financial markets have given a thumbs up on this extension. Stocks gathered across major indexes in Tuesday’s trading session shortly after Trump’s Sunday delays announced.
The market actually fell apart a few days earlier when Trump publicly declared that 50% EU tariffs would definitely go on. Trump later praised the tariff threat and said he halted trade negotiations with the EU. “After doing what I did, they said, ‘I’ll see you whenever you want,'” he said on May 28th.
Related: The crypto market will rebound when President Trump extends EU tariff deadline to July 9th
Trump calls the “tachtlate” label “nasty.” Tariff delays claim to be a “negotiation” tactic
When reporters asked him about the “octopus trade” label during the press interaction, President Trump replied with visible frustration. “Ah, I’ll drive the chicken out. Isn’t that good? I’ve never heard of it,“He said the question “nasty” before fiercely defending the recent decision. He stressed that delaying tariffs or lowering them is all part of a broader negotiation strategy. ”Do you call it that chicken? It is called negotiation,“He shot back.
Financial Times columnist Robert Armstrong first introduced the “Taco Trade” nickname in early May. Some market participants reportedly trade in this pattern. Market declines caused by Trump’s first harsh tariff announcement, and we expect rebounds when those tariffs are later eased or withdrawn.
Patterns of policy change: Previous “mutual” and Chinese tariffs also saw a sharp reversal
This is not the first time that such tariff policies have fluctuated under the current administration of the market. For example, on April 2, President Trump introduced a large set of new “mutual” tariffs that affected imports from all countries, reaching rates of over 30%. However, within a week, and after a period of prominent stock market volatility,
Related: Bitcoin will skyrocket above $103K as the US and China announce tariff cuts at 30% and 10%
Trump has announced that he will reduce these tariff rollbacks to 10% for a temporary 90-day period. The market spiked strongly following that decision, marking one of the most important day’s gatherings in recent history. A similar cycle took place in China. After enacting a 145% tariff in April, Trump fell to 30% in May after new trade talks with Beijing began.
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