Analysts highlight the term TACO (Trump Always Chickens Out) among traders
According to discussions with diplomats, officials, and analysts from the U.S. and Europe, many believe that international responses to Donald Trump’s threats have become significantly restrained.
Previously, Trump’s trade policies and foreign policy threats invoked immediate panic in financial markets and prompted countries to seek quick compromises. However, analysts, including those at The Washington Post, note that governments now increasingly distinguish between Trump’s bombastic rhetoric and his actual actions.
Factors contributing to this change include court rulings in the U.S., Congressional stances, and instances where Trump has backtracked on threats or softened his position. Examples cited include the trade dispute with China, demands regarding Greenland, proposed tariffs, and policy towards Iran.
Jeremy Shapiro, director of the U.S. program at the European Council on Foreign Relations, stated that traders have adopted the term TACO (Trump Always Chickens Out), reflecting a decreased likelihood of European governments reacting with alarm to Trump’s statements.
Nevertheless, the authors of the article caution that the diminishing impact of Trump’s threats does not eliminate risks. Analysts warn that growing desensitization to his rhetoric could have dangerous repercussions. If his statements are routinely disregarded, it may make Trump’s future actions less predictable and push him toward more unilateral and risky decisions.
