First TACO, now TWIT: Trump will inevitably tank the economy

The president’s bold strikes on Iran disproved the TACO theory that Trump Always Chickens Out. But on tariffs, the budget and migrants, there’s the TWIT theory: Trump Will Inevitably Tank the economy.

Claims that Donald Trump always chickens out led to the coining of the term ‘TACO trade’ back in May, but he didn’t when he sent American B-2 bombers to Iran. David Rowe

Michael StutchburyEditor-at-large

Jun 27, 2025 – 2.57pm

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This time, Donald Trump didn’t chicken out. Instead, he launched what some describe as the boldest use of American military power since George W. Bush’s shock-and-awe assault on Saddam Hussein in 2003.

Trump had a bit on his mind when he prematurely exited the G7 leaders summit in the Canadian Rockies late last week, standing up Anthony Albanese in the process.

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Michael StutchburyEditor-at-largeMichael Stutchbury is the former editor-in-chief and editor-at-large of The Australian Financial Review. Michael left in 2025 after more than four decades writing and editing national newspapers.