A new acronym has investors optimistic about the state of the markets, but U.S. President Donald Trump is hardly a fan.

The term “TACO trade,” which began circulating in financial circles recently, was largely meant as a gag by its creator, and refers to the flip-flopping the president has become synonymous with when it comes to international trade .

But what does it mean and why does Trump hate it so much?

What is the ‘TACO trade’?

“TACO” is an acronym for “Trump Always Chickens Out,” referring to the growing sentiment among investors that though Trump threatens steep tariffs that pose a major threat to markets, he routinely backs off from his position.

The sentiment has led to a tailwind in the markets as investors increasingly believe that the president’s tariff threats may n

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