Ongoing US-China trade tensions and volatile policy shifts have left investors caught between betting on tariff deescalations and bracing for increased uncertainty.

Investors are beginning to realize that Trump never follows through on his tariff threats, inspiring the TACO trade: 'Trump always chickens out'

Trump erupted when a reporter asked him about "TACO trade," a Wall Street term that stands for "Trump Always Chickens Out."

Wall Street loves a catchy acronym, and the “TACO trade” has captured the mood, as investors and analysts attempt to make sense of the roller-coaster market action that has followed President Donald Trump’s sweeping tariff threats and subsequent walk-backs.

Some investors are also using the acronym to describe the market turbulence caused by Trump’s sweeping trade policies, according to Reuters. Mark Spindel, chief investment officer of Potomac River Capital LLC, likened the stock market to being caught in a "pinball machine as a result of that policymaking process."

TACO stands for “Trump Always Chickens Out”. The word was coined by a Financial Times columnist and refers to the US President's tendency to go back and forth on tariffs and trade deals in the wake of his April 2 “Liberation Day” speech.

The president made it clear he doesn't like the 'TACO' term so he probably would not be happy with these numbers