Trump Clashes With Reporter Over “TACO” Theory
CNBC’s Megan Casella sparked a heated response from Donald Trump after asking about the so-called “TACO theory” — “Trump Always Chickens Out” — a term coined by Financial Times columnist Robert Armstrong. The theory suggests that Trump often backs down from aggressive tariff threats under market pressure, leading to investor confidence that such threats aren’t serious.
Casella asked Trump directly about the idea, prompting him to launch into a defensive and meandering response. He cited fluctuating tariffs on China and the EU, claimed credit for $14 trillion in investments (a figure previously unsubstantiated), and insisted his actions were strategic negotiations, not signs of weakness.
Trump bristled at the question, calling it “nasty” and accusing Casella of misunderstanding his tactics. Meanwhile, Casella later remarked that while Trump disliked the question, it revealed how his credibility on the global stage may be eroding as countries see him as likely to retreat under pressure.