Two setbacks suffered by Donald Trump this past week –– one legal, the other reputational –– has put him in a corner where he may have to double down on his tariff war to save face despite the possibility it could further s cripple his second term.

That is the opinion of one ally of the president who doesn't work in the White House and believes the present feels mortally wounded.

On the heels of losing a tariff case reviewed by the U.S. Court of International Trade, the president was made aware that he has become a joke among Wall Street traders who freely use "Trump Always Chickens Out" (TACO) when it comes to market bets of his tariff threats.

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According to a report from Politico, the president and his inner circle see the setbacks and the mockery jeopardizing a central part of his economic policies which may lead him to double down instead of easing off on his constant tariff threats to calm both the markets and voters as his approval numbers tumble.

As Politcio's Megan Messerly, Eli Stokols and Adam Cancryn wrote, "Trump is digging in on his vow to impose steep tariffs by any means necessary — and stick it to those who question his strength and think he’s bound to 'chicken out.' He and administration officials have said that negotiations with other countries will continue, are insisting they’ll win their current tariff battle in court and are even preparing back-up strategies for new tariffs in case they don’t."

According to the insider, the president's fear of looking weak will likely force him to go down the wrong path.

“I don’t think Trump can back down now, mainly because of this TACO theme,” they explained. “He’s clearly super irritated by it and it’s like a challenge to his very manhood now.”

Former Trump adviser Marc Short is of the same mind, remarking, "The president is not one to accept defeat. He certainly didn’t in 2020. It’s not like because he had a bad court ruling he’s going to turn his back on this.”

The report goes on to note that Trump allies outside the White House worry his inner circle isn't counseling him to reconsider his options.

“Whether you’re for tariffs or not, it’s pretty clear the president doesn’t have unilateral authority to raise taxes,” cautioned longtime Trump advocate Stephen Moore.

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