Iran Parliament Leader Backs TACO Crypto Trade
Iran's Parliament Speaker Mohammad Bagher Ghalibaf posted trading advice on X, characterizing Trump's pre-market announcements as a reverse indicator and urging followers to take the opposite side of every energy move Trump signals before markets open.
Key Takeaway
Iran's top lawmaker publicly endorsed betting against Trump's tariff threats — the TACO trade goes global.
Iran's Parliament Speaker Mohammad Bagher Ghalibaf posted trading advice on X, urging followers to take the opposite side of every energy move Trump signals before markets open.
Traders coined the term TACO — Trump Always Chickens Out — after watching the same pattern repeat. Trump announces sweeping tariffs, markets dip, then he softens his position and markets recover. Financial Times columnist Robert Armstrong gave the strategy its name.
The pattern emerged from Trump's April 2025 liberation day tariffs, which hit trading partners with rates up to 50%, followed by a May 2025 EU tariff threat. Both times markets fell then rebounded after Trump backed down.
Treasury Secretary Scott Bessent defended the approach as a maximalist negotiating position aimed at onshoring benefits and American jobs. Trump framed the reversals not as weakness but as closing deals once he'd extracted the leverage he wanted.
China adapted by refusing to budge on tariffs, recognizing Trump's tendency toward bluff over firm policy. Analyst Ramamurti credited Trump for recognizing U.S. market leverage in negotiations, noting reciprocal tariffs have justification if they lower barriers overall.
This article was written based on reporting from BeInCrypto.
