"TACO trade," which stands for "Trump always chickens out," was coined by Financial Times columnist Robert Armstrong but has since spread across Wall Street and the internet, mocking the president's back-and-forth on tariff policies.

Ratcheting up the tariff rhetoric has consistently sent the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average into a tailspin. However, whenever President Trump has chosen to reverse course, stocks begin to rebound as you can see in the S&P 500 chart above.

Some investors are also using the acronym to describe the market turbulence caused by Trump’s sweeping trade policies, according to Reuters. Mark Spindel, chief investment officer of Potomac River Capital LLC, likened the stock market to being caught in a "pinball machine as a result of that policymaking process."

The only problem with the TACO trade is that the premise isn’t true. Trump doesn’t always chicken out. His threats are often worse than his actions, but five months into Trump’s term, it is abundantly clear that taxes on imports will be considerably higher for as long as Trump is in charge.

There was a reason for President Donald Trump’s particularly caustic response when a reporter asked him Wednesday about a new term coined about the president’s tariffs: TACO, or Trump Always Chickens Out.