US President Donald Trump has denied backing down on tariffs, saying his changing plans have helped gain ground in trade talks with the European Union and other countries. The term “TACO trade,” coined by a Financial Times columnist, refers to a pattern of Trump announcing heavy new tariffs, only to pause or lighten them later. Trump claims that his moves have started trade negotiations, but critics say it’s just negotiation under pressure.
Trump has repeatedly changed his tariff plans, including targeting the EU with a 50% tariff before delaying it. He credits the delay with jumpstarting talks between the US and EU, despite criticism that he’s backing down. The “TACO trade” term has been used to describe similar moves against China, which Trump also scaled back after initial trade talks.
The EU-tariff turnabout is not unique to Trump, as his administration has reversed its own trade policies before, including a 90-day tariff reduction on almost every country last year.
Source: https://www.cnbc.com/2025/05/28/trump-tariffs-taco-trade-chickening-out.html