Transcript
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Jim Cramer (1:34)
My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cray America. Other people make friends. I'm just trying to save you money here. My job is to put this thing in context and you're going to need it. Listen up. Call me 1-800-743- CNBC. Tweet me jim Cramer. Bring on the tariffs. Enough already. Let's just disrupt everything. The President wants to do it. He wants to hammer Canada. He wants to hobble Mexico. He's all over Europe and Mercedes Benz, VW Lambo. Hey Toyota. Look out. Same with Nissan China. Forget it Jake. Tough luck. Nissan and Kia See. Yep. Welcome to Liberation Day where market does to all of our trading partners like we did to the Red coast in days of your it's time to make a pay. Teach them a lesson. Don't tread on me, just begin to fight. Whether you think it's good policy or bad policy, it sure seems like Wall Street's gotten tired, worried about it and just says bring it on. Although today, in some sort of weird reprieve, The Dow gained 235 points, S&P advanced.67% and the Nasdaq actually climbed.8%. You know what, that's kind of like a joke. See, because that was before all the announcements after hours. And the trades after hours are painting a different picture, a horrendous picture. The one we had had dangled in front of us since election day, the one that's finally here and it's every bit as horrible for stocks as many of us thought it could be. But tonight, you know What? I'm going Mr. Brightside, I'm doing it because I think we'll be making too big a deal of these tariffs tomorrow because we have been talking about how horrible they will be for ages and regular viewers know that I've never been a huge fan of free trade. It would be fine if everybody plays by the rules, but we're the only country that plays by the rules. I want fair trade instead, which means tariff those who tariff us just as hard. Of course, I've been hoping for reciprocal tariffs and that's what we allegedly got, even if they were far more severe than I'd hoped for. With reciprocal tariffs, we hammer specific countries for putting up specific trade barriers or subsidizing specific industries. While we got reciprocal tariffs, I never expect them to be this high, nor did many other people. From Wall Street's perspective, Trump might as well have used a meat axe, which is what we were most afraid of. The term reciprocal meant nothing. In the end, the term punitive is more accurate. But again, we are going to make too big a deal of it. So in a few more days, we're going to have to start looking for things to buy. Ultimately, I think we've been looking at this president all wrong. Though this president turns out to be an equal opportunity hater, he doesn't care what these countries do. Ultimately thinks they can't really hurt us. Why? Because they don't buy much of our stuff anyway. So why not clobber them with tariffs, at least get some money out of them. The President's view is simple. Our so called trading partners will either eat the tariff or the people who sell the product will eat the tariff. Companies will make less money. Foreign businesses subsidized by their home countries won't make any money because they're simply being run as make work programs that dump the final product on us. And China, which has used every loophole to get into our markets, they'll be paying too big time, as will any of our companies that sell in there because presumably the Chinese will now hurt our companies there you think Nike, there you think Apple. That's what's happening. We've been inured to this months because the president has done it with such wrath. But his bite on Liberation Day turned out to be worse than his bark. It's confusing to most people because it was so poorly explained by the President. This morning. There was this terrific piece in the Wall Street Journal that talked about all the Chinese companies that moved into Mexico in order to use NAFTA as still one more way to get into our markets directly. If the President had told that story, I think we'd feel a heck of a lot better about what the heck he's doing. We don't really understand it. We just know it sends our stocks down. For months, we've been bombarded with stories from the mainstream media about how crazy this trade war and the rest of the world is. We've been told that the president's making enemies and angering everyone, as if these countries really buy our stuff because we have these persistent trade deficits anyway. We've heard all about how these tariffs will slow down business and cause inflation to get out of control while closing America off from the rest of the world. But the President has not talked about how often Chinese companies are involved in the goods we buy. China's insidious octopus. They've burrowed into so many of our trading partners that if we hurt those partners, we're only striking back in China, too. Of course we're hurting Korea, of course we're hurting Germany, and of course we're hurting Japan. So remember my dad used to be a middleman to get wrapped business. He watched government subsidies, Chinese mills wrecked their American counterparts. Of course, he's always he loved dealing with Chinese. The end. They were much more accommodating than Americans. But you have to understand this is about the damage that China did to these American factory towns. President Trump knows these stories like my father as well, and he's sick of them. There's this is a real problem and our government's fine taking action, even if not everybody's going to like it. And by the way, it's going to result in much higher prices for the consumer. Again, Trump doesn't care. He sees bigger issues than a Small hike in price for things. Even if you and I think it's going to be terrible for the average consumer, he doesn't care. Let's talk consequences. The President has not said one word about investing in stocks during this period. He's not suckered you in this market. He hasn't told you to invest in America. He hasn't promised higher stock prices. He may have flinched when the s and P500 was down 10% a couple of weeks ago. But he follows the Dow much more than he does the S and P. And the Dow isn't even down that much from its highs. More important because Trump doesn't seem to care about the stock market this time around. Why should he care about certainty, which I've said over and over again is what makes investors happy? He's not trying to make investors happy. He's not about happiness for us. He's about making these countries bend to his will. And if it causes inflation, then it causes inflation. He never promised you a Rose Garden stock market and I sure didn't see one in the Rose Garden today. Not with huge tariffs on Taiwan. That brings in video stock down. Not a big tariffs with China. That'll hurt Apple. Not on the stocks of so many tech companies that will be crushed by tomorrow. Even as many of these companies are from countries that were trying to build things here to appease him. The appeasement plan didn't work. We keep asking, is it a clearing event? What the heck does that mean? What is Trump a Trump put? What does that mean? We're missing the point. Yes, I want this over. Yes, I want clarity. I want some sense of how this can all end. But that makes me a fool like the rest of us. We keep thinking that's the point. That's how. That's not how Trump sees it. Here is the point. We should simply be looking at companies that cater to small medium sized businesses that can't be hurt by tariffs. We need to accept the higher level of inflation because it's coming. We should take our out some money and put it on the sidelines, betting this will end someday, even if we don't know when. But right now we have to get with the program and the President. The program is taking down our trading partners and hurting bottom lines all over the place. He doesn't care. He demonstrated that tonight, so you better get used to it. Why is that his goal? Here's the bottom. The stock market may matter to you and me. It used to matter to Trump. But that was then and this is now. He wants to punish our trading partners for taking advantage of us. And he'll do whatever it takes to make that happen, even if it crushes our stock market and results in higher prices for all sorts of goods for you and me in America, if that's what it takes to get it done, he's going to do it. I say get over it. And we will work together to find stocks that no matter what Trump does, he can't hurt us. Even as that universe grows smaller by the day, it turns out I was right. It really is the Walmart White House. Trump really does believe in, every day, lower stock prices. Not in the supermarket. Not in the cereal aisle, and not in the fruit aisle, and not in any aisles. Only these aisles right here in the New York Stock Exchange. Pull an Ohio, Paul.