President Trump grew visibly annoyed when asked about the viral “TACO Theory” — an acronym for “Trump Always Chickens Out” — popular among Wall Street traders. The theory highlights Trump’s tendency to backtrack on tariffs and policies whenever markets react negatively.

Trump’s recent U-turns on tariffs, including sudden pauses and delays on EU import duties, have fueled this perception. While Trump denies “chickening out,” calling it negotiation, investors see his tariff moves as unpredictable but part of a serious protectionist strategy.

Analysts note that markets now react less sharply to Trump’s tariff threats, viewing them as reversible, though they agree his broader economic policies mark a significant shift in U.S. trade strategy.