【Iran Crisis】Did Trump "Back Down" Before Issuing an Ultimatum to Iran Again? TACO Again? Understanding Trump's Multiple Reversals Since TACO Was Proposed

TACO (Trump Always Chickens Out), originally referring to Trump’s announcement of reciprocal tariffs that triggered market volatility, and later his frequent delays or exemptions from tariffs, is nicknamed TACO by the market. Traders no longer fear threats but see them as buying opportunities. Currently, “TACO” has expanded into the military realm. When Trump issued a final ultimatum to Iran and announced a “5-day delay” just hours before the deadline, media called it “Hormuz TACO.”

U.S. media point out that Trump’s major announcements are often cleverly timed with market openings and closings. For example, just before the U.S. stock market opened on Monday morning, Trump announced giving Iran more time. Similarly, 12 hours before the final 48-hour ultimatum, Trump announced a 5-day delay on the “red line” for opening the strait, coincidentally extending it until after the weekend stock market close.

TACO was first introduced by Financial Times journalist Robert Armstrong in a May column, noting that global stock markets in April initially plunged but recovered most of their losses, reflecting the Trump administration’s limited tolerance for market and economic pressure.

Since the term was coined, Trump has conducted multiple TACO episodes.

1. “D-Day” reciprocal tariffs, then announced a suspension

On April 2 last year, Trump announced reciprocal tariffs. On the 9th, just 13 hours after tariffs took effect, amid sharp stock market swings, Trump announced a 90-day suspension.

2. Post-Geneva meeting U.S.-China tariff “reset”

After “D-Day,” Trump repeatedly threatened China, with reciprocal tariffs rising to 145%. In May last year, after U.S.-China Geneva negotiations, both sides entered a 90-day truce. Trump declared a “full reset” of China-U.S. relations, lowering tariffs to 30%, which caused the Nasdaq to rise over 4% that day.

3. EU auto tariffs postponed

In May last year, Trump criticized the EU as “very difficult” in trade and announced a 50% tariff on EU cars starting June 1. After a call with EU Commission President Ursula von der Leyen, Trump announced a delay until July 9 just before the deadline.

4. Sudden reversal after proposing Greenland purchase, low-key withdrawal of threats

By the end of 2025, Trump proposed buying or annexing Greenland, but Denmark strongly rejected it. Earlier this year, at the Davos World Economic Forum, Trump changed his tone, saying “I won’t use force.”

After meeting NATO Secretary General Mark Rutte, he announced a “framework of a future deal.” Subsequently, he announced on social media platform Truth Social that he was withdrawing his threat to impose tariffs on multiple European countries starting February 1.