Investors are hoping the TACO trade saves them from Trump's tariffs again

Trump holds up a graph that supposedly shows how much tariff other countries have on the US, versus what he calls "reciprocal tariffs."

Carlos Barria/REUTERS

• Stocks fell on Monday as Trump announced updates on tariffs.
• Investors are hoping the TACO trade—short for Trump Always Chickens Out—will prevail.
• Trump has backed down or pivoted from other announcements that shook markets this year, sparking big relief rallies.

Stocks dropped on Monday with Donald Trump's tariff tough talk back in the spotlight.