1. In British English it is a slang term for a Welsh person or thing. It may be derived from the Welsh forename Dafydd, meaning "David", and is now considered offensive or contemptuous by many people.
An old anti-Welsh English rhyme goes thus:
2. In American English taffy is a term for a type of "candy" (itself a term in American English for confectionery). One kind of taffy is Salt Water Taffy. Taffy is made by stretching or pulling (AKA pulling taffy) a sticky mass of sugar to make it fluffy. When this process is complete the taffy is cut into small colorful pieces and wrapped in wax paper to keep it soft. It usually has a fruity flavor, but many other flavors are common.
See also: