Wall Street loves a catchy acronym, and the “TACO trade” has captured the mood, as investors and analysts attempt to make sense of the roller-coaster market action that has followed President Donald Trump’s sweeping tariff threats and subsequent walk-backs.

U.S. stock index futures dipped on Monday following President Donald Trump's plans to double tariffs on imported steel and aluminum, fueling more uncertainty around U.S. trade policies. Trump said on late Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25% starting Wednesday,

As trade worries bubble up once again in US markets, some on Wall Street are gaming out how to take advantage of the wild tariff-related selloffs and rallies that have defined the first five months of 2025.