The Stock Market's TACO Trade May Be About to Backfire

The stock market's TACO trade may be about to backfire

A trader works at his desk on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on July 11, 2025.TIMOTHY A. CLARY/AFP via Getty ImagesInvestors have come to see Trump's more extreme trade policies as bluffs.But without financial markets to check Trump, will the trade backfire?GMO's Ben Inker says a weak reaction to tariffs could embolden Trump. Buying the dip during recent tariff volatility has been a profitable str…

Trump’s aggressive tariff push and ‘TACO’ spark global trade uncertainty

America’s trading partners brace for another series of tariff proposals that have blindsided allies

TACO trade backfires on Wall Street as Trump charges ahead on tariffs

Wall Street thought it had President Donald Trump all figured out on his trade war, but the past week has raised concerns that investors may be wrong. Markets had dismissed tariff risks under the assumption that Trump would follow an earlier pattern and back off, in what became known as the so-called TACO trade. That allowed stocks to reach new record-high territory recently, marking a stunning rebound from the collapse triggered by his “Libera…