We can use Mexican food to create a clever acronym to describe Donald Trump's disruptive and unprecedented presidency. TACO - Trump Always Chickens out - is an acronym that reflects the U.S. President's tendency to escalate a situation, before retreating when the political and economic costs are too high. EMPANADA - Everybody Makes Promises But Nobody Delivers Anything - was used to describe countries that made outrageous and impossible trade 'promises' in an attempt to avoid Trumps tariffs. NACHO -- Not a Chance Hormuz opens -- has been popular in recent years. After Washington and Tehran signed a peace agreement on June 17, the Strait of 'Hormuz, which is vital to international trade, reopened in a'sort of way. Even this partial relief has now been called into question, after Trump stated on Wednesday that MOU is "over", reviving the danger that the waterway may again become a point of pressure.

The best Mexican food acronym to describe Trump is TAMALES. This stands for Trump Always Plays Games, and Leaves Everyone Shafted. The sector that is most affected by Trump’s policies and decisions, however, is the commodity trade. Trump's policies, from his tariffs on U.S. copper and aluminum imports to his Iran War, have caused market distortions around the world. This includes supply chain disruptions as well as higher inflation.

IRAN MISCALCULATION This impact was most pronounced in the war he launched with?Israel against Iran on 28 February. The U.S. has suffered a strategic and financial defeat despite initial military victories. None of the stated goals, such as eliminating Iran's missile capability, have been achieved. Iran's hardliner rulers, however, have learned that they can take the world economy as hostage by blocking the Strait of Hormuz. Prior to the conflict, around 20% of crude oil, refined petroleum products, liquefied gas, and significant quantities of aluminium and sulphur were transported through the Strait of Hormuz. The Gulf has now become a source of increased risk for crude oil, refined products, and LNG.

Gulf producers, U.S. Allies, such as Saudi Arabia and the United Arab Emirates, and Kuwait, now have to deal an emboldened Iran. Iran is also likely to have more money, assuming that any final agreement with Trump results in the releasing of blocked funds, and the end of sanctions on Iran's exports. Asian countries such as Japan and South Korea that depend on Middle East crude, and to a certain extent, China and India who are heavy importers, will now need to rethink their energy security. It may be necessary to increase the size of strategic reserves and diversify their locations. This includes not only crude oil and fuels, but also metals and commodities like sulphur which is used in fertilisers as well as the sulphuric acids that are used for processing metal ores.

On Wednesday, crude oil prices jumped over 4% to a new two-week record high amid fears of a fresh disruption in Middle East supply. The prices of refined fuels like diesel and gasoline are still high in Asia. This is a cost to consumers and businesses.

VOLATILITY OF COPPER Expectations that Trump, upon returning to office last January, would impose tariffs up to 50% on U.S. imports of copper led to a surge in the imports as the premium between domestic prices and the global benchmark?London Metal Exchange widened. Trump's presidency is marked by a pattern of volatility and unintended effects. His policies and actions fail to achieve the stated goals. Tariffs aren't reducing the U.S. deficit in trade, nor has it resulted in a significant revival of manufacturing.

They have, however, triggered inflation and caused a shift in the flow of commodities around the world. The Iran War did not result in a regime change, or remove the threat posed by Tehran's nuclear program or missiles.

It did, however, increase fuel prices, cause inflation, threaten global energy security, and force a rethinking about the U.S.'s power and influence and its value as an increasingly unreliable allie.

TAMALES is a good acronym to represent the Mexican dish that Trump will be serving. TAMALES suffers the same flaw as TACO, NACHO?? and EMPANADA - it's not always 100% accurate. It's the word "always". Sometimes, the Trump administration implements policies that are effective. Its efforts to "build supply chains" for vital minerals that are not under the control or influence of China is one example. The Trump administration signed numerous agreements to increase mining and processing capacities for minerals like rare earths and lithium. The Trump administration has signed numerous agreements with countries to develop mining and processing capacity for minerals such as rare earths, lithium, cobalt and tungsten. The Trump administration could make acronyms such as TACO or TAMALES obsolete if it were to replicate this strategy. The risk is that the delusion, and incompetence which have characterized his second term will continue to disrupt the markets during his remaining tenure in office.

(source: Reuters)