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Trump escalates tariff threats, but investors bet that he will always back down.
Odaily News Trump escalates tariff threats, but the market has already been "desensitized" as investors bet that Trump will always back down. Trump's latest tariff measures bring his tariff levels closer to the high tariffs he announced in early April for dozens of U.S. trading partners than some analysts had expected. However, those so-called "reciprocal" tariffs were postponed and renegotiated after the stock market experienced a big dump; subsequently, Trump delayed the effective date of the tariffs from July 9 to August. However, investors are not taking the threats from the current president as seriously as they did his earlier remarks, betting that he will eventually abandon tariffs that could severely harm U.S. growth. This trade is referred to in the market as "TACO"—an acronym for "Trump Always Chickens Out." (Jin10)