'TACO' Anticipation: Is the Complacent Market Facing a Setback This Time?

[Financial News] "Will they back down this time too?"
The market is showing complacency, expecting 'TACO' (Trump Always Chickens Out). Despite the notification of high tariffs to the counterpart countries of the United States, the market seems unconcerned, expecting such 'TACO'.
Foreign media such as the New York Times (NYT) and the Washington Post (WP) reported on the 13th that despite Trump's tariff threats, the market is relaxed, expecting 'TACO'.
Donald Trump, the President of the United States, has been notifying high tariffs to major trading countries starting with South Korea and Japan on the 7th (local time), but the market reaction is relatively optimistic.
As he has repeatedly notified and deferred tariffs, there is an expectation that he might back down this time as well. President Trump has shaken the market with 'tariff bombs' and then retreated, earning the nickname 'TACO'.
President Trump announced reciprocal tariffs to countries around the world in April and soon after initiated a 90-day deferral.
Although it was said to be a deadline for negotiations, only the UK and Vietnam have concluded trade negotiations with the US during this period.
On the other hand, there are warnings that the market is showing complacency.
President Trump is pressuring countries again by sending tariff letters from the 7th.
He is also expanding the tariff war by item, including copper, pharmaceuticals, and semiconductors, setting August 1 as the imposition date, emphasizing no further deferrals.
However, these warnings are not immediately affecting investor sentiment. On the 10th, the New York Stock Exchange hit an all-time high, and both the S&P 500 index and the Nasdaq Composite index rose to break previous records.
The NYT pointed out that stock market investors seem to be 'betting' that President Trump's tariffs are a negotiation strategy rather than a real threat and that they will not actually be imposed.
The WP also reported expert diagnoses that investors believe President Trump will always back down from his tariff plans, leading to rising stock prices.
However, the WP pointed out that President Trump sees the stock price rise as a credential to strengthen tariff threats.
Particularly, as his 'one big, beautiful bill' to realize his core national agenda has passed the threshold of Congress this month, it is predicted that he can push forward with tariffs with confidence.
The NYT also reported that President Trump, who emphasized trade agreements, seems unbothered by the lack of agreements to announce in recent weeks.
Unlike the initial stage of repeated retreats, there is a noticeable change in President Trump's recent stance of pushing forward with tariff policies.
The British daily Financial Times (FT) also reported that there are voices warning against excessive optimism.
Vincent Mortier, Chief Investment Officer (CIO) of Amundi, Europe's largest asset management company, said, "There seems to be complacency about 'TACO' trade."
Jamie Dimon, CEO of JPMorgan Chase, also pointed out, "Unfortunately, I think there is complacency in the financial market."
A former senior official of the Trump administration also mentioned, "The market assumes that tariffs will largely disappear, but I don't see it that way," adding, "Trump has always liked tariffs."

june@fnnews.com Lee Seok-woo Reporter