The “TACO” acronym, which stands for “Trump Always Chickens Out,” references the act of Trump setting a high tariff rate and then later pausing or lowering it. While it’s true that Trump has done this several times, his tariff strategy has reaped real rewards.
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During the second quarter of 2025, U.S. tariff revenue grew by 73% to a record high of $64 billion. Tariff revenue in June totaled $26.6 billion compared to $6.3 billion a year ago.
U.S. Tariffs at Highest Level Since the 1940s
While Trump extended the April 2 tariff pause to August 1, he hasn’t budged on his 10% baseline tariff. Trading partners of the U.S. now view the 10% duty as the best-case scenario instead of the worst-case scenario, said the Wall Street Journal’s Greg Ip.
As of July 2, the U.S. has an average tariff rate of 13.4%, according to data from JPMorgan Chase (JPM). That’s well above the average rate of 2.3% in 2024 and marks the highest rate since the 1940s. At the same time, countries have been hesitant to retaliate, signaling the strength and importance of the U.S. in global trade.
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