Trump is angry about the term 'TACO', which may bring more uncertainty to the market.

On June 1, within just a few weeks, “TACO” (Trump Always Chickens Out) quickly became a staple topic of conversation on Wall Street, and Trump’s reaction to “TACO” was intense. During a White House press conference on Wednesday, when asked about the term, Trump angrily retorted, “Never say what you just said. That’s a vicious question… To me, that’s the most vicious question.” According to media reports, Trump was not only angered by the term itself but also displeased that his team failed to inform him in advance that the term was gaining popularity in the market. A source revealed to the media, “What he cannot tolerate the most is that people think his tariff adjustments are a sign of weakness. ‘TACO’ clearly touches on his core pain point— as a president who prides himself on being a tough negotiator, any implication of weakness is unacceptable.” It is noteworthy that although Trump’s trade threats often cause market fluctuations, U.S. stocks have just completed their best May performance since 1997. This performance somewhat validates the “TACO trade”—market participants have begun to look for rebound opportunities following Trump’s trade threats. However, analysts warn that a Trump eager to prove he is not a coward may take a tougher stance to maintain his self-esteem and image, signaling more uncertainty risk.