The Peter Zeihan Podcast Series Coping Mechanisms 101: The "TACO" Trade || Peter Zeihan
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Jun 9, 2025 Explore the chaotic world of trade relations as the podcast dives into the recent shifts in policies under the current administration. Discover how aggressive strategies impact key partners like Mexico and Canada. The discussion also unpacks the tumultuous trade negotiations with Europe and China, highlighting the uncertainty that has emerged from unpredictable tariffs. Legal challenges surrounding tariff authority add another layer of complexity to the trade landscape.
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Erratic Trade Policy Causes Uncertainty
- The Trump administration's trade policies are erratic due to lack of staffing and staff expertise.
- Policy decisions are often made whimsically without clear goals, causing confusion among international partners and markets.
TACO Trade: Trump Backs Down Often
- The "TACO" trade on Wall Street means "Trump Always Chickens Out" on trade threats.
- This reflects market views that big tariff threats usually end with Trump backing down shortly after.
Uncertainty Halts Industrial Investment
- Industrial construction spending in the U.S. has stalled due to uncertainty from erratic trade policies.
- Businesses avoid investing when they cannot predict trade rules, especially under unpredictable leadership.