CNBC's Jim Cramer strongly criticized the White House's approach to trade policy, stating that it threatens to further damage the stock market. He expressed concern over the potential market crash, questioning the administration's strategy. The S&P 500 experienced significant drops following the announcement of retaliatory levies by China.
Cramer emphasized his worry for investors' retirement funds (401(k)s and IRAs), stating that the market's instability could prevent people from making sound financial decisions for their families. While he confirmed he is holding onto his investments for his Charitable Trust, he stated that he does not currently see reasons to buy stocks.
President Trump's vow that his trade policies will "never change" further fueled market uncertainty. While he previously indicated openness to negotiations under specific conditions, the lack of immediate White House response to Cramer's comments added to the overall ambiguity.
CNBC's Jim Cramer on Friday blasted the White House for its approach to trade policy, arguing that it threatens to further slam stocks. "It should not be in our country's interest to have the market crash," Cramer said on "Squawk on the Street," as U.S. stocks were coming under heavy selling pressure in premarket trading. The S & P 500 tumbled 3% shortly after Friday's opening bell, building on its 4.8% plunge in Thursday's session. "I struggle for what the president's game plan is because if you wanted to make the market crash, I think you would go with this game plan," Cramer said Friday. "I don't like that game plan. I do not favor that ... It's very disappointing." Cramer's comments Friday came shortly after China announced retaliatory levies on U.S. imports, ratcheting up global trade tensions in the wake of President Donald Trump's sweeping, steeper-than-expected tariff announcement late Wednesday. To be sure, he said he's not advocating investors get out of the market — "I'm going to hold. We've sold enough stuff for my Charitable Trust," the portfolio used by the Investing Club. "But I can't bottom fish. I don't want to sleep with the fishes," he said. Cramer, who runs the CNBC Investing Club, added later, "They have to be careful because I can't think of a single reason in the world to buy a stock." "I respect our viewers' 401(k) and [individual retirement accounts], and I don't want them to be hurt for no reason because that's their bedrock and we don't want them to stop [investing]," Cramer said. "The stock market is the greatest wealth creator of all time, but when you take it down the way it's been insensitively handled, instead of sensitively handled, then you're going to make people not do the right thing by their families." In a social media post Friday after China's retaliation, Trump vowed that his policies would "never change," adding to the uncertainty about where trade policy goes from here. On Thursday, Reuters reported that Trump said on Air Force Once he would be open to negotiations with trading partners if they made "phenomenal" offers. The White House did not immediately respond to CNBC's request for comment on Cramer's remarks.
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