In a segment on CNBC’s “Squawk on the Street,” host Jim Cramer reportedly raised alarms about a potential stock market “crash” as a result of President Donald Trump’s recent tariff policies.
Following the announcement of these tariffs, the market plummeted dramatically, with a nearly 1,700-point drop occurring immediately after the opening bell, exacerbated by China’s subsequent announcement of retaliatory tariffs.
Cramer expressed his concerns to co-host Carl Quintanilla, stating, “If you wanted to make the market crash, I think you would go with this game plan.”
He highlighted the disbelief among investors regarding the administration’s approach, questioning the effectiveness of the strategies being implemented.
Drawing parallels to historical market failures, he reminisced about the market’s reactions in 1987, emphasizing that many experienced investors got caught off guard during those downturns.
Although Cramer acknowledged the fundamental soundness of the economy, he underscored the disconnect between economic fundamentals and investor sentiment, noting that he could not find a single reason for people to buy stocks under the current circumstances.
He criticized the administration’s hardline approach, suggesting that it could lead to a cascading effect detrimental to both the market and the economy.
Cramer, known for his straightforward commentary, urged Trump to reconsider his strategies, mentioning that negotiating terms, such as the TikTok deal, could provide an alternative approach to avoid a market catastrophe.
Ultimately, he expressed disappointment in the current game plan, calling it a “they know nothing game plan” that goes against the best interests of the country.
Cramer’s stark warning serves as a gauge of the growing anxiety within financial markets regarding the impact of ongoing tariff battles.
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