The TACO president doesn't just back away from a bad idea without announcing he got something in return. He'll declare exemptions or delays for companies or industries that kowtow to him in some way - maybe he'll demand these companies make contributions to "non-woke" engineering universities or remove "DEI hires" from their boards, who knows.
Unrelated, but I don't get the "taco" thing. I'm Mexican— it's a head-scratcher that people use the name of our food as an insult to Trump. He doesn't look like a taco, and the acronym is a sentence, not an adjective/phrase, so it doesn't make much sense spelled out in most contexts.
RINO republicans don't look like rhinoceros. That the word makes no sense by itself means that you'd have to ask what they meant by it. If the acronym were "DUMB" or "CLOWN" or whatever then I don't think it'd stand out as much.
Also, you're right that it's often used in a way that wouldn't make sense grammatically if it were written out, but that's true for most acronyms I think; e.g. JPEG or GIF.
"Look at this funny Graphics Interchange Format I just sent you!"
taco is an acronym that stands for the phrase trump always chickens out, it was coined or popularized earlier this year when Trump backed off of The Liberation Day tariff stuff when the bond market got nervous.