Sheinbaum Knows Mexico Can’t Rely on Trump “Chickening Out”

In financial circles, a new term has gained traction: “TACO”, short for Trump Always Chickens Out. The phrase reflects a pattern noted by Wall Street traders — former U.S. President Donald Trump often threatens aggressive tariffs, causing market volatility, only to backtrack under pressure, prompting a market rebound.

This idea was recently spotlighted by Financial Times columnist Robert Armstrong, who wrote in May:

“The administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain.”

While this analysis has become widely accepted in recent weeks, it wasn’t always so obvious. During Trump’s first 100 days in office, financial markets were thrown into disarray. Stock prices plunged and currencies swung sharply as the White House floated sweeping tariff policies.

Even though some of those initial fears faded when Trump retreated, real economic damage has been done. Certain tariffs were enforced, and the threat of future trade disruptions still looms — casting a shadow over global economic stability.

Mexico’s Incoming Leader Isn’t Taking Chances

Mexico’s new president-elect, Claudia Sheinbaum, appears to be taking note. While some investors hope Trump’s trade threats are more bark than bite, Sheinbaum isn’t counting on that.

The volatility tied to U.S. tariff policies has already impacted Mexico’s economy in the past. With another Trump term potentially on the horizon, Sheinbaum and her advisers are preparing for a scenario where Trump follows through on threats rather than backing down — a clear departure from the “TACO” assumption.

As the global economy braces for more uncertainty, Sheinbaum’s stance signals a more cautious and pragmatic approach: hope for restraint, but prepare for confrontation.

  • Related Posts

    Trump and Putin on Collision Course Over Ukraine War

    The once-curious camaraderie between Donald Trump and Vladimir Putin appears to be unraveling fast — and tensions are mounting as their respective agendas over the war in Ukraine now stand…

    Continue reading
    U.S. Attorney General Launches Grand Jury in Trump-Russia Allegations Probe”

    The decision marks a new legal phase in the long-running controversy over the so-called “Russiagate” allegations that overshadowed much of Trump’s first term in office. According to CBS News, the…

    Continue reading

    World News

    Hansie Cronje: The Rise, Fall, and Enduring Mystery of South Africa’s Fallen Hero

    Totally Torn Apart”: How Morecambe FC’s Decline Is Shattering a Community

    Nations Reunite to Tackle the Escalating Global Plastic Crisis

    Chris Hemsworth on Fear, Aging, and the Return of Thor

    Health & Wellness: Building a Balanced Life in a Modern World

    Finance and Economy: The Engines Driving Global Progress

    The Power of Technology: Shaping the Future of Our World

    Trump and Putin on Collision Course Over Ukraine War

    Science and the Environment: Working Together for a Sustainable Future

    The Evolving World of Entertainment: A Mirror of Culture and Technology