Wall Street mocks Trump: The Taco-Man and its empty threats!

Wall Street mocks Trump: The Taco-Man and its empty threats!

Wall Street, USA - President Donald Trump is currently called the nickname "Taco-Man", which jokes the words "Trump Always Chickens Out" (Trump always moves in). This humorous name comes from Robert Armstrong, a columnist of the Financial Times. She often reflects Trump's impending, but not serious statements, especially with regard to his repeated protective tariff threats. On Wall Street, the term quickly increases in popularity, which indicates that the dealers are increasingly ignoring Trump's moods. Comedians, including Jimmy Kimmel, have already joked about Trump's caricature in the chicken costume. In addition, the idea was expressed that "T-A-C-O" could replace the melody of the well-known song "Y-M-C-A".

Although Trump stated in a scene of the White House not to know the term "Taco", he reacted visibly upset to the demand. Alyssa Farah Griffin, the president's former press spokeswoman, expressed that he would probably not like the nickname. The Wall Street dealers have now passed to call Trump's tactics openly by name, which is considered significant. It could even be that Trump's threats lose effect if they are no longer taken seriously.

tariff policy and market volatility

Gambling psychology on Wall Street was significantly influenced by Trump's fluctuating tariff policy. Investors see a clear reaction to Trump's threats. The stock market has experienced major fluctuations since he announced that it can raise tariffs to imports and then withdraw these statements. A new acronym, Taco, has established itself among investors to describe Trump's strategic approach. The dealers notice that the markets often drop after Trump threats tariffs, but increase immediately when he pulls them back.

A current example of this dynamic was Trump's threat of 50% tariffs to the European Union, which he immediately took back after the EU had approved the proposal to plan trade negotiations. Chris Beauchamp from IG Group noticed that the Taco strategy among investors is becoming increasingly popular, while the US markets showed stability on Wednesday. The S&P 500 rose by 0.2%, 3.5% under its record high, while the Dow Jones Industrial Average increased by 60 points (0.1%) and climbed the Nasdaq Composite by 0.2%.

international reactions and economic uncertainties

The uncertainties that Trump's second term in the EU triggers cannot be overlooked. European economies are concerned about the upcoming political and economic consequences. In particular, companies that serve the US market from abroad fear a protectionist policy. Economic research institutes already promise significant economic losses for the EU. According to the Institute of German Economy (IW), GDP of the EU could shrink by 1.3% by 2028 and that of the German economy.

A cumulative GDP loss of around 180 billion euros for Germany between 2025 and 2028 is expected. The background is the assumption that tariffs will increase by 20% from 2025 from 2025, while US imports from China could even be increased by 60%. Numerous countries have already reacted to these economic threats. For example, the EU is planning retaliation tariffs of 20% on imports from the USA.

The uncertainties produce different reactions in different EU countries. While the Hungarian government is optimistic and growth impulses are expected, countries like Poland are split. Italy emphasizes the common values ​​of the western world, but suffers from competitive pressure that Trump's politics triggers. Ursula von der Leyen announced that it would strengthen the EU's competitiveness and strive for new free trade agreements to face possible confrontations with the USA.