Not everyone can achieve the level of fame that Hawk Tuah Girl has reached. In reality, some instances of virality tend to develop more gradually, like a slow-burning fuse. This is exactly what has happened with a fascinating new term within the world of Wall Street jargon that has transcended the boundaries of the financial sector, becoming a part of the broader cultural conversation. The term I’m referring to is the TACO trade.
In his newsletter published on May 2, Robert Armstrong, a seasoned columnist for the Financial Times, introduced the acronym TACO, which stands for “Trump Always Chickens Out.” Initially, Armstrong used this term to illustrate how President Donald Trump frequently announces significantly high tariffs, only to later respond to the ensuing market turmoil by postponing or modifying these tariffs. The outcome is inevitably a market rebound following these instances of “chickening out.”
For a brief period, the TACO buffet was confined to the niche audience of finance enthusiasts on platforms like Twitter (or X, for those of you who enjoy unconventional experiences). However, the narrative shifted dramatically when a headline from the New York Times described traders profiting from the TACO Trade by investing during market dips, anticipating that the President would eventually backtrack. This moment marked a significant turning point, as the concept gained widespread recognition.
Today, the TACO concept has evolved into a legitimate cultural phenomenon, to the extent that a reporter directly inquired about President Trump’s thoughts on it. If you haven’t yet seen the captivating video of CNBC correspondent Megan Cassella explaining the TACO trade to Trump himself, I highly recommend taking a moment to watch it. His reaction clearly indicated that he is not fond of being labeled as someone who “chickens out.”
This leads me to believe that the President may not have fully appreciated the entirety of the “Back to the Future” trilogy. While the first installment does not delve into this theme—having been produced before the lucrative potential of sequels became evident—both of the subsequent films prominently feature a plot where Marty McFly learns the critical lesson of not overreacting every time he is called a “chicken.” This lesson is essential to avoid potentially life-altering consequences, whether it be a disastrous car accident or a showdown in the Old West as his alter ego, Clint Eastwood, facing off against a notorious figure.
First and foremost, I ask that you refrain from sending me emails expressing your discontent over the spoilers I just shared about a film series that wrapped up more than three decades ago. Secondly, it’s important to note that, like Marty, President Trump is not genuinely a chicken; rather, he is excessively preoccupied with the possibility of being perceived as one.
Take a moment to push aside the visceral reaction you might feel at the mention of Trump’s name. Trust me, I’m grappling with a similar sensation myself. Trump embodies numerous unsavory traits: a bigot, a liar, an adulterer, a fraud, and a tax cheat. The list could extend indefinitely. However, one thing he is not, fundamentally, is a chicken.
Consider this: he stood tall and defiant immediately after being shot at, raising his fist as a sign of resilience. If you’ve ever faced a similar situation, you would understand the sheer terror that comes with it. His reaction in that moment does not align with what we typically associate with a chicken. Granted, he did avoid the draft during the Vietnam War, but his political persona requires a certain level of boldness. The audacity to express highly unpopular and distasteful ideas to a vast audience necessitates a unique type of fearlessness.
Marty McFly, too, displayed bravery. Despite the odds stacked against him, he initiated a physical confrontation with a gang of skaters in a futuristic setting, all while facing an opponent equipped with a bizarre cybernetic arm.
In essence, Marty was no chicken. His struggle stemmed from an excessive concern about how others perceived him, particularly in terms of cowardice. By the conclusion of the series, he successfully overcame this personal dilemma.
Whether we will witness any comparable personal evolution from our 78-year-old President remains to be seen. Since his retreat on the tariffs proved to be a prudent decision—given that they were rather misguided initially—perhaps this lack of growth is acceptable. The term TACO serves as an efficient label for Trump’s behavior. Those of us capable of rational thought can recognize that the aspect which most troubles him—being labeled a “chicken”—is not entirely representative of his character.
Nonetheless, it might be beneficial for him to reconsider the implementation of any tariffs, particularly if he plans to merely TACO his way out of them later. This proactive approach could save him from unnecessary embarrassment and prevent the continuous market fluctuations that often accompany such decisions. While we may have to forgo amusing memes about TACO Tuesday or the TACO truck that Democrats sent to serve free tacos outside the Republican National Committee’s headquarters, such sacrifices may be necessary for the greater good.
Jonathan Wolf is a civil litigator and the author of Your Debt-Free JD(Opens in a new window) (affiliate link). He has experience teaching legal writing, contributing to various publications, and has made it both his professional focus and personal passion to be financially and scientifically literate. Any opinions he shares are likely to possess significant value, but they remain solely his own and should not be attributed to any organization with which he is associated. He prefers to retain the credit for his insights. To get in touch, he can be reached at jon_wolf@hotmail.com(Opens in a new window)<em>.</em>
For the latest updates on litigation, regulation, financial trends, and industry insights, subscribe to Finance Docket, a collaboration between Breaking Media publications Above the Law and Dealbreaker.
