By coinnews 
00:00 Speaker A
So the talk on Wall Street this week was all about the Taco trade, but Yahoo Finance senior columnist Rick Newman has his own take that the premise of the Taco trade isn’t true. And Rick joins me now. How so, Rick?
00:13 Rick Newman
I’m sorry, guys. So if you said Trump sometimes chickens out, you’d be right. But you can but the Tisco trade it just I mean, it does not it doesn’t work, right? I mean, look, I love the memes. I love the Trump in the chicken suit with the feathers, uh, the tacos on his gold jacket and stuff. But I mean, I’m
00:43 Speaker A
He didn’t look happy to be asked that question. He did not enjoy that question.
00:46 Rick Newman
He hated the question. He did not enjoy that question, which made it even more fun, to be honest. But look, I mean, I mean, I’ve been following every step of the way here. Um, Trump is, uh, at the end of the day, we’re going to end up with tariffs on imports, taxes on imports that are going to be something like six times, eight eight times or 10 times higher than when Trump took office. So where we stand right now, worth reminding people, Trump took office with the average tariff on imports at 2.5%. It’s now around 18%. That is with these emergency tariffs in place. We now know that there’s some question legally about whether those will stand. The Supreme Court is going to decide that. But if the if the courts do end up shooting down all those emergency tariffs, Trump’s got at least four other ways that he can impose these tariffs. He did some of them in 2018 and 2019. So we know they’re likely to be more durable legally. And Trump is going to do it. I mean, people who know Trump, I mean, if you haven’t been paying attention, Trump is a true believer in tariffs despite all the evidence that’s going to make the economy worse off on it. He is going to do it. He’s going to find a way to do it. So Trump sometimes chickens out, but he does not always chicken out. What do you make of the market response to all this? In essence, we’re about to wrap up what was a solid month for stocks, right? And a big rebound off the April low. Even the bond market, we were talking earlier, it’s taken a deep breath. It’s calmed a bit. The benchmark benchmark tenure is back to 44. What do you make of that?
02:43 Rick Newman
Uh, Trump lowered the chair the type China tariffs from 145% to 30%. That’s the answer, right?
02:51 Speaker A
He he didn’t. He he didn’t. Because if he if he if he didn’t completely chicken out, if he would if he did, he would have he would have taken it from 145% back to no additional tariffs. But so that’s where we are. We went from started with no there were already tariffs on Chinese imports, but the new ones are 30% right now. Trump went from 145% to 30%. So that is that is that represents the whole strategy, which is he starts out super high and ends up somewhere that’s not as bad, but still somewhat uncomfortable.
03:56 Speaker A
Rick, thank you. I always appreciate it.
04:00 Rick Newman
Bye, guys.