If investors widely bet that Trump will blink, that means there is no market freakout. And no market freakout in turn means no one is holding Trump’s feet to the fire, pressuring him to back away from policies that could damage the economy and corporate profits.

Trump just upended the TACO Trade by signing an executive order with an updated list of tariffs that was tougher than markets were expecting.

A slew of countries will face steep levies, including a 50% tariff on imports from Brazil and a 30% tariff on the European Union.