Markets had dismissed tariff risks under the assumption that Trump would follow an earlier pattern and back off, in what became known as the so-called TACO trade. That allowed stocks to reach new record-high territory recently, marking a stunning rebound from the collapse triggered by his “Liberation Day” reciprocal tariffs in April.

Tariff Man is back again — and so is Wall Street’s TACO trade. President Donald Trump is once more threatening to lob massive duties on a wide swath of US imports, everything from copper and pharmaceuticals to goods from Japan and Russia.

Donald Trump's repeated delays on trade tariff deadlines have led investors to nickname him "TACOs" (Trump Always Chickens Out). Initially, markets largely disregarded Trump's latest tariff delay to August 1, with experts suggesting his credibility on such threats has diminished.