Coping Mechanisms 101: The "TACO" Trade
Peter Zeihan
6 min
The United States faces an institutional crisis because the administration makes trade policy based on whim rather than data or legal authority. Expect nothing but more confusion as everyone tries to figure out what is happening while the floor keeps shifting under all of us.
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Donald Trump
Chapters
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0:00
Trade Policy Chaos
The Trump administration has made 132 trade policy changes, causing confusion among major trading partners like Europe and China due to erratic decision-making.
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2:52
The TACO Trade
Wall Street has developed the 'TACO' trade, standing for 'Trump Always Chickens Out,' reflecting uncertainty about whether tariffs will be implemented or reversed.
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3:32
Industrial Stagnation
Industrial construction spending in the United States is seized up because investors cannot predict the rules of the game. A trade court ruled that Congress cannot unilaterally cede tariff authority to the president, creating an institutional crisis over the administration's power.
Key points
- 0:00
The administration has implemented 132 documented trade policy changes.
- 0:44
Europe faces potential tariff increases of 5 to 50 percent starting July 9th.
- 0:44
China agreed to reduce tariffs from 145 percent to 10 percent temporarily.
- 0:44
Trump claims China violated the agreement to talk, threatening tariff returns.
- 2:52
The administration is making policy based on whim rather than data or reality.
- 3:32
Industrial construction spending in the United States is seized up due to uncertainty.
- 3:32
A trade court ruled Congress cannot unilaterally cede tariff authority to the president.
- 5:43
An institutional crisis exists regarding the ability of the administration to act.
Who and where
People · 1
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Donald Trump 12
President of the United States (2017–2021; since 2025)
Photo 1
1. Photo: Daniel Torok, Public domain, via Wikimedia Commons · Wikidata · redrawn in our house style (Donald Trump)
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