Trumponomics Can the World Count on ‘TACO’ Anymore?
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Jun 25, 2025 Shawn Donnan, a senior reporter at Bloomberg focused on the global economy, and John Authers, a senior editor and Bloomberg Opinion columnist, dive deep into the impact of Donald Trump's tariffs. They discuss the dramatic rise in U.S. tariff rates, reaching levels not seen since the 1930s, and its potential economic repercussions. The duo also analyzes Trump's unique negotiation tactics, the tensions surrounding Iran, and the uncertain future of trade policies. Ultimately, they explore how these elements could reshape markets and international relations.
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Tariffs at Century Highs
- U.S. average tariffs have risen from about 2.5% to roughly 15%, the highest since the 1930s.
- Further hikes could reach 25%, the highest in over a century, signalling major economic consequences.
Trump Always Chickens Out (TACO)?
- Markets have long believed Trump backs down on tariff threats, coining the "TACO" acronym.
- Recent actions, like the bunker buster strike, suggest he may follow through, shifting the negotiation dynamics.
Extreme Demands as Negotiation Tactic
- Trump's strategy is to make extreme demands to bring others to the negotiating table.
- The "modest" tariffs considered normal now actually represent a significant policy shift.