Bitcoin Core telling me transaction is not "trusted"
A transaction will be distrusted if


it conflicts with a transaction already in the blockchain, or
it is from someone else, and it is not confirmed.


A transaction will be trusted if


it has confirmations.


If a transaction is not trusted, the client won't create transactions that spend it. (You wouldn't want a transaction you created to be in limbo because one of its inputs wasn't confirmed.)

Once that transaction is confirmed, the trusted field in listtransactions will be true.