Wall Street has coined a new four-letter acronym for President Trump's predictable pattern regarding tariffs: TACO, which stands for "Trump Always Chickens Out". Created by Financial Times commentator Robert Armstrong, the term describes how Trump's threats of massive tariffs cause stocks to plunge, but he often delays or drops them later, leading to market rebounds. Ted Jenkin of Exit Stage Left Advisors notes this has become a common Wall Street playbook, where investors buy beaten-down stocks after bad news, anticipating Trump will back off and the stocks will rebound. University of Michigan economist Justin Wolfers finds this dynamic unprecedented, highlighting the difficulty in predicting when Trump will follow through on threats.
Regarding Social Security benefits, President Trump's promise to eliminate taxes on them has resulted in only a partial fix in the new House tax bill. Instead of a full exemption, the legislation proposes a temporary $4,000 deduction for seniors starting in 2025. This deduction primarily targets modest-income seniors but excludes the lowest earners who already pay no taxes and the wealthiest. Tom O’Saben of the National Association of Tax Professionals describes the bill as "a far cry from making Social Security tax-free," noting it limits revenue loss significantly compared to a full exemption and avoids disturbing Social Security trust funds. The bill adds this deduction alongside existing senior and base standard deductions, offering some savings but not the total relief promised. The bill faces potential resistance in the Senate due to deficit concerns, though avoiding the appearance of denying tax relief for seniors is politically unpopular.
In another development, President Trump issued a last-minute pardon for former nursing home CEO Paul Walczak, who had pleaded guilty to tax crimes. Walczak dodged a prison sentence and $4.4 million restitution just weeks after his mother, Elizabeth Fago, held a $1 million fundraiser at Mar-a-Lago. Walczak's pardon application argued his prosecution was politically motivated due to his mother's significant ties to Trump's campaigns and efforts against Biden's 2020 run, including links to a scheme involving Ashley Biden's stolen diary. Despite Walczak's admitted misuse of employee tax funds, the pardon came after Fago attended an exclusive Mar-a-Lago dinner hosted by MAGA Inc., challenging the idea that wealth doesn't provide a "get-out-of-jail-free card". A White House official framed the pardon as a response to alleged political targeting by the Biden administration.
Elon Musk has criticized Trump's $3.8 trillion spending bill, calling it "undermining" and claiming the "DOGE team" is being used as a scapegoat. Speaking ahead of a SpaceX Starship launch, Musk stated the bill "increases the budget deficit, not just decreases it". He expressed frustration that setbacks in Washington, D.C., are blamed on the DOGE team, despite their limited involvement in those issues. Musk, who previously had a close relationship with Trump, admitted he likely spent "too much time on politics" after his political foray led to controversy and negative impacts on Tesla. He specifically critiqued the bill as being unable to be both "big" and "beautiful," questioning if his political involvement was worth the cost given the bill's potential to increase the national debt.
The CDC has announced a major shift in U.S. public health policy by removing COVID-19 vaccines from the recommended immunization schedule for healthy children and pregnant women. Health and Human Services Secretary Robert F. Kennedy Jr. framed the decision as fulfilling a promise to "make America healthy again". This change will likely make it harder for these groups to receive vaccinations due to potential loss of insurance coverage. Supported by figures like FDA Commissioner Dr. Martin Makary and NIH Director Dr. Jay Bhattacharya, the move is based on a perceived lack of evidence for the vaccine's necessity in healthy kids and aligns with policies in other countries. The decision was made without input from the CDC’s Advisory Committee on Immunization Practices and raises concerns among some public health experts about confusion and limited choices, especially given that pregnant women face significantly higher rates of stillbirth if infected with COVID.
Finally, the U.S. has halted new student visa interviews as the Trump administration prepares to expand social media screening for applicants. A directive from Secretary of State Marco Rubio instructed U.S. embassies globally to pause scheduling new student and exchange visitor visa appointments indefinitely. While interviews already scheduled are unaffected, the pause creates uncertainty for prospective international students planning to attend U.S. universities, many of which rely heavily on these students, particularly those from Asia. The administration's move is part of a broader effort to tighten scrutiny, following a crackdown on foreign students who have voiced critical political views online, exemplified by the revocation of a Columbia University PhD candidate's visa over social media posts. The State Department states it will use "every tool" for vetting entrants, adding a layer of uncertainty for thousands seeking education in the U.S.
