TACO, from Politico:
"In the last three months, Trump has announced plans to raise levies on various countries — Canada, China, France —
at least five times in an attempt to force countries to bend to his foreign policy goals.
Not only has the White House not executed those tariffs, but it has pulled back other existing or planned duties on certain foods, furniture and computer chips to address concerns about domestic prices.
Trump’s latest — and most high-profile — walk back, on tariffs he had threatened on eight European countries over Greenland, comes just one day after
markets plummeted on the news of a potential transatlantic trade war. Treasury Secretary Scott Bessent spent much of Tuesday trying to argue that the markets were spooked over Japanese bonds, not Greenland, but Trump’s own remarks at the World Economic Forum in Davos, Switzerland — coupled with the tariff reversal and an ensuing stock market rally — suggest otherwise.
For Trump, it underscores the diminishing returns and growing risks of wielding his favorite diplomatic tool in 2026, in the build-up to midterm elections that are expected to hinge on the economy and cost-of-living pressures that would be exacerbated by new trade wars and market instability.
“The affordability issues have become a huge problem that they have to grapple with,” said a former USTR official who currently lobbies the administration on trade policy and was granted anonymity to speak candidly. “The public has linked tariffs and affordability.”
But while business leaders are relieved the White House has pulled back from its most extreme tariff plans,
they caution that there are economic consequences from the whiplash. Even some of those closely aligned with Trump are warning that the threats, alone, are taking a toll — especially when directed at the country’s most reliable trading partners.
“The erosion of sentiment in allied countries toward doing business in the United States is real,” said U.S. Chamber of Commerce Executive Vice President Neil Bradley. “That alone carries consequences.”