• Trump confronted with the term 'TACO trade,' implying he often backs down from tariff threats.
• The term, coined by Financial Times, stands for "Trump Always Chickens Out."
• Markets typically dip on tariff threats but rebound when Trump delays or rescinds them.
• Trump called the reporter's question about 'TACO trade' a "nasty question."
• Despite market volatility, analysts note a pattern that investors are capitalizing on.

President Donald Trump has faced backlash over a new term trending on Wall Street called the TACO trade, which stands for "Trump Always Chickens Out." Coined by Financial Times columnist Robert Armstrong, this term reflects a pattern where stocks drop following Trump's tariff threats, only to rebound when he retreats from his assertions, as seen recently with European tariffs, according to HuffPost and New York Times.

During a press conference, when a reporter questioned Trump about the implications of the TACO term, he reacted with visible irritation, stating, "I chicken out? I’ve never heard that," and labeled the question as "nasty." He countered that what he describes as negotiations should not be interpreted as backing down, which aligns with observations made by CBS News and ABC News.

The TACO trade phenomenon has become a joking point among investors, who have started to take his threats lightly, using them as opportunities for profit. After Trump announced hefty tariffs, they typically buy stocks at lower prices with the expectation that he will retract his threats. Market analysts have noted this reaction, with many suggesting that Trump's aggressive tariff policies lead to short-term gains when he lowers rates following market downturns, as highlighted by Business Insider and India Times.

Trump's reluctance to acknowledge the term showcases his sensitivity to perceptions of weakness, especially when it comes to his image as a strong negotiator. Analysts warn that this pattern could have long-term economic repercussions, as the frequent backing down might undermine investor confidence in both him and U.S. economic stability, according to Newsweek and Salon.