What began as a meme on social networks and an irony between Wall Street analysts became another ingredient in the instability of international business relations.
The acronym – abbreviation of Trump Always Chickens Out (“Always Yellow Trump”) – gained prominence in May by provoking the irritation of US President Donald Trump.
Created to mock Trump’s frequent setbacks after announcing aggressive trade tariffs, the expression reappeared amid uncertainties about US foreign policy.
During an interview at the White House, a reporter quoted the term, causing the president’s irritated reaction: “I ‘yellow’? I never heard that,” Trump replied. “Do you call it yellow? This is negotiation.”
Despite the tone of disdain, the tension grew in the markets. Trump’s threat against Brazil – this time accompanied by an official letter sent to President Lula – overthrew the Brazilian scholarship and boosted the dollar over R $ 5.60, with analysts fearing loss of competitiveness in strategic sectors such as steel, aluminum, cars and industrial goods.
From meme to economic turmoil
The acronym Taco first appeared in columns of the Financial Times and in Saxo Bank reports, to describe Trump’s erratic behavior in the face of tariff decisions. In April and May, he even announced sanctions against dozens from countries and retreated days later, claiming “negotiation requests.”
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The standard was repeated with the European Union, threatened with 50% rates from June 1. After criticism and drop in the bags, Trump postponed the measure for July. In her speech, she held the President of the European Commission, Ursula Von Der Leyen, for requesting more time.
Now, . Unlike most previously affected countries, Brazil has a commercial deficit with the US, which makes surcharge even more severe.
“Bolsonaro tariff” and narrative war
The Brazilian government evaluates that the measure has political motivation, especially for the approach of the country with the BRICS and the trial of Jair Bolsonaro in the STF -. President Luiz Inacio Lula da Silva stated that “Brazil will not accept to be protected by anyone” and that unilateral measures will be faced based on the economic reciprocity law, sanctioned in April.
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While the left tries to turn the crisis into a symbol of national sovereignty, Jair Bolsonaro’s allies accuse the Lula government of diplomatic inaction. The term “Bolsonaro fare”, popularized on the networks, attributes the episode to Eduardo Bolsonaro’s performance in the US, where he articulated with republican congressmen and pressed for Supreme Court sanctions.
Now, – movement that brings legal risks and can raise the institutional temperature with the Supreme Court, according to analysts.
