Rodrigo Santos Andrade share

Markets rally on Trump’s tariff backdown

visibility comment0 event January 21, 2026 timer 20:47

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Markets have rallied after US President Donald Trump backed down on proposed tariffs.

This created a phenomenon known as the ‘taco trade’ where investors anticipate his brinkmanship tactics.

The ASX 200, US markets, and the US dollar all strengthened, while the Australian dollar hovered around 67.5 US cents.

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