TACO Trade To 'Anywhere But The USA': Viral Trends Echo 'Sell America' Amid Tumultuous Federal Policies

As “Trump Always Chickens Out” or TACO trade was trending last week, the “Anywhere But The USA” or ABUSA trade is also emerging as a notable market trend in 2025, driven by concerns over U.S. economic policies, trade uncertainties, and a global shift toward diversified investment strategies.

What Happened: While the TACO trade signals a widespread belief that Donald Trump‘s possible tariff rollbacks or extensions could be opportunities to buy the dip, the new “Anywhere But The USA” or ABUSA trade suggests fleeing the U.S. assets amid uncertainties and chaotic policy changes.

According to a 2024 report by Carnegie Endowment for International Peace, former U.S. Trade Representative Robert Lighthizer, the architect of Trump's 2017-2021 trade policy, advocated for tariffs to protect U.S. industries and pressure other countries to cease unfair trade practices.

However, experts cited in the report warn that such policies could isolate the U.S. economically, driving investors to look elsewhere, aligning with the ABUSA narrative.

Meanwhile, Alan Siow, the investment manager at Ninety One, told CNBC that ABUSA trade is a “recalibration toward global balance, cyclical recovery, and multi-polar growth” rather than a contrarian move

He argues that the trade reflects a decade-long shift away from a “widespread preference for U.S.” assets, driven by seesawing trade policies, proposed foreign capital taxes, and concerns over U.S. fiscal spending.

Siow's perspective emphasizes a structural change in investor behavior, where the U.S. is no longer the default safe haven.

He sees ABUSA as a logical response to a U.S. economic environment perceived as increasingly risky due to policy flip-flops, such as Trump's tariff threats and retreats, linked to the TACO trade, and a dollar selloff that has made non-U.S. markets more attractive.

While these strategies promote the “Sell America” narrative, an LPL Financial note added that fear of asset sales from the “de-dollarization” and “Sell America” is also a potential headwind to Treasury yields.

Why It Matters: Rami Cassis, the founder of London's Parabellum, also added another perspective to the rise in ABUSA trade, describing the reaction of investors toward the U.S. as “emotive.”

According to Cassis, beyond his unpredictable trade policies, a number of other contentious stances held by Trump, including his approach to the conflict in Ukraine and his position on LGBTQIA+ rights, also played a role in discouraging some individuals from investing in America.

Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Tuesday. The SPY was down 0.38% at $590.45, while the QQQ declined 0.36% to $521.32, according to Benzinga Pro data.