In a dramatic turn of events at the World Economic Forum in Davos, California Governor Gavin Newsom found himself barred from the USA House following a spat with former President Donald Trump. Newsom’s team claims that pressure from the White House led to his exclusion from the official US venue, which serves as a networking hub for global political figures and business leaders in Switzerland. Despite being slated to join a panel discussion hosted by Fortune Magazine, Newsom was conspicuously absent, reportedly due to this restriction.

Reacting to the incident, Newsom took to social media platform X, questioning the strength of those who would allegedly ban him from a simple fireside chat. His exclusion came on the heels of his critique of Trump’s keynote speech, which Newsom dismissed as “insignificant” and mocked for the president’s previous, now-abandoned threat to acquire Greenland. The California Governor, who was in the audience during Trump’s address, commented on the president’s self-proclaimed role as NATO’s ‘daddy’ and his criticism of European allies. Considering a potential presidential bid in 2028, Newsom didn’t hold back, labeling the speech as “remarkably boring” and “disappointing,” particularly in its lack of real substance regarding Greenland.

The White House Rapid Response team was quick to counter Newsom’s critique, taking to X to deride him for attending the speech he found fault with. They posted a photo of Newsom at the event, captioning it with a scathing remark about the governor’s purported failures and suggesting his presence was “embarrassing.” This online exchange reignited the use of the term TACO, standing for ‘Trump Always Chickens Out,’ a phrase coined by Wall Street traders in response to the president’s history of retracting major threats, such as the Greenland acquisition and tariff plans. The back-and-forth highlights the ongoing tensions between Trump and his detractors, showcasing the political theater that often accompanies such high-profile international gatherings.

This week, it was a frenzy of Japanese stock market traders posting ‘TACO’ celebrations on X following Trump’s de-escalation. Traders anticipated Trump would live up to his TACO nickname long before the opening bell in New York as investors in Tokyo posted gleeful memes. ‘Japan stocks and US stocks both going up!! So glad I believed in Trump-san’s TACO,’ wrote one Japanese trader using the honorific Trump-san, a polite and respectful form of address for the president. Wall Street Investors and financial experts also forecasted on Tuesday night that Trump would have a ‘TACO’ moment ahead of his Davos speech.

‘The [market] decline is small, given the gravity of the situation,’ said Stephen Dover, chief market strategist at Franklin Templeton. ‘What that implies to me is that most investors are thinking TACO.’ Trump, a former New York real estate tycoon with a keen eye on Wall Street, closely tracks the markets and is likely aware stocks tumbled amid the Greenland controversy. Shares later rebounded after the president pledged not to use force.

Despite vowing to not use force, Trump still doubled-down at the speech on his pledge to take control of the Danish territory. The president claimed Greenland would be used to build the infrastructure for a ‘Golden Dome’ defense system that would protect the Western Hemisphere from ballistic missiles. The president over the weekend imposed tariffs on eight European nations over their support for Greenland. The tariffs will start at 10 percent next month and rise again to 25 percent in June, remaining in place until a deal is reached.