Charlottesville, VA (CVILLE RIGHT NOW) – CBS business analyst Jill Schlesinger weighed in on the latest tariff tensions, highlighting how mixed messages from the administration are creating market instability. Referencing Financial Times columnist Robert Armstrong, she explained a new theory circulating on Wall Street: the “TACO trade,” which stands for “Trump Always Chickens Out.” “What he is saying is that the administration does not have a high tolerance for market and economic pressure,” Schlesinger said, “and as a result, often backs down from the most extreme announcements on tariffs.”

While the president recently announced plans to double tariffs on imported steel and aluminum, from 25% to 50%, Schlesinger noted that skepticism remains. “They literally are like, we don’t buy it,” she said, pointing out that this pattern of walking back bold announcements has led to a roller-coaster market that remains largely flat for the year. Despite the volatility, the S&P is up slightly, while the Nasdaq is down just within 1%.

Schlesinger voiced concern for small business owners who are bearing the brunt of the uncertainty. “If you’re a small business owner, where do you go? You have enormous amounts of risk and no power,” she said. Unlike major corporations, small businesses lack the influence to seek tariff exemptions and are struggling to make long-term plans. She warned that if hiring slows or layoffs begin, the ripple effects will hit consumers hardest.

Listen to the full conversation here: