Archive · 6 Jan 2026
Navigating Trade Deals with Donald Trump
Donald Trump is known for his unpredictable approach to trade deals, earning him the nickname TACO, which stands for Trump Always Chickens Out.
His trading partners, like Canada and the EU, are trying to avoid big fights with him.
They use a strategy called DOVE, which means they try to talk things out instead of making things worse.
For example, Canada decided not to tax American tech companies after Trump got angry.
The EU also took bourbon off their list of things to tax in response to Trump's threats.
Even though the EU is preparing a big list of things they could tax to show they're serious, they probably won't actually do it because they don't want things to get worse.
Everyone is trying to be careful and avoid big arguments.
Donald Trump is known for his unpredictable trade policies, earning the nickname TACO (Trump Always Chickens Out).
Trading partners like Canada and the EU use a strategy called DOVE (Diplomacy Over Visible Escalation) to avoid conflict.
Canada dropped plans to tax American tech firms after Trump's furious response.
The EU removed bourbon from its retaliation list following Trump's threat of 200% tariffs on French wine.
The EU is preparing a €95bn ($112bn) retaliatory package but is unlikely to implement it due to internal divisions and fear of escalation.
- Who
- Donald Trump and his trading partners, including Canada and the EU
- What
- Navigating trade deals and avoiding all-out conflict
- When
- Ongoing during Trump's presidency
- Where
- United States, Canada, and the European Union
- Why
- To avoid escalation and maintain diplomatic relations
- Trump's Nickname
- TACO (Trump Always Chickens Out)
- Canada's Action
- Dropped plan to tax American tech firms
- EU's Action
- Removed bourbon from retaliation list
- EU's Retaliatory Measures
- €95bn ($112bn) of trade
- EU's Strategy
- Diplomacy Over Visible Escalation (DOVE)