economy
February 24, 2026
Classic 'TACO'? Investors shrug off Trump's latest tariff announcement
Global equity markets were muted as Trump’s latest tariffs came into effect at 10%, a lower-than-expected rate.
TL;DR
- New blanket tariffs of 10% have come into force, lower than the initially announced 15%.
- Investors are largely unconcerned, citing Trump's history of policy reversals and other global issues.
- The tariffs are temporary under Section 122 of the 1974 Trade Act, lasting up to 150 days.
- Analysts believe the market reaction is muted because of the "TACO" (Trump Always Chickens Out) trade.
- Concerns about artificial intelligence and overall trade policy uncertainty are overshadowing the tariff news.
- While some countries may temporarily benefit or lose, the short-term nature of the tariffs makes them uninvestable.
- There is anticipation that the tariffs might increase to 15% shortly, as an executive order is reportedly being prepared.
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