Former President Trump has reversed his threat of imposing a 100% tariff on China, sparking speculation about a potential TACO trade strategy. This term refers to Trump's pattern of announcing aggressive measures and later retracting them. The reversal comes in the wake of China's new rare-earth export controls and mirrors previous tariff actions. Trump stated that the tariffs were part of ongoing negotiations, while critics, including Peter Schiff and JD Vance, suggested the threat was merely a bluff or negotiating tactic. The initial tariff announcement had already led to a market pullback and notable losses in cryptocurrency trading.