Don’t fall for the trap of the Taco trade

[SINGAPORE] At first, it was ominous. Then, it became obvious. There’s a new trade in town called the Taco trade, or Trump Always Chickens Out.

Here’s how it works: When US President Donald Trump announced his Liberation Day tariffs on Apr 2, the S&P 500 index tanked by more than 10 per cent in days.

His tariff threat lasted less than a week before he backed down, pausing the implementation of higher tariffs for 90 days. In response, the index jumped by 9.5 per cent in a single day.