President Donald Trump has again delayed a tariff deadline. His back and forth on the policy spurred TACO accusations. What does it mean?

Markets had dismissed tariff risks under the assumption that Trump would follow an earlier pattern and back off, in what became known as the so-called TACO trade. That allowed stocks to reach new record-high territory recently, marking a stunning rebound from the collapse triggered by his “Liberation Day” reciprocal tariffs in April.

“TARIFFS WILL START BEING PAID ON AUGUST 1, 2025.,” Trump posted Tuesday morning to Truth Social, the social media website he owns. “There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 - No extensions will be granted.”

Buying the dip during tariff volatility has paid off for investors, but the TACO trade could ultimately backfire, GMO's Ben Inker said.

If investors widely bet that Trump will blink, that means there is no market freakout. And no market freakout in turn means no one is holding Trump’s feet to the fire, pressuring him to back away from policies that could damage the economy and corporate profits.

President Donald Trump announced looming tariffs on at least seven countries on Monday as he struggles to lock in new trade agreements with some of the biggest U.S. trading partners. The president first posted a pair of letters to the leaders of both Japan and South Korea on social media which stated they would be slapped with 25 percent tariffs starting on August 1.

JP Morgan Chase CEO Jamie Dimon says President Donald Trump has been correct not to let his sweeping tariffs go into effect but warned that Trump’s pattern of backing down after threatening massive tax increases may not continue indefinitely.