By Daily Mail (U.S.) | Created at 2025-04-05 03:51:32 | Updated at 2025-04-05 12:39:54
8 hours ago
Long-time CNBC talking head Jim Cramer warned that the economy could genuinely 'crash' if Donald Trump continues with his tariff program.
His stern words came after the White House announced a baseline 10 percent tariff on all imports, effective April 5, with higher rates for countries imposing steeper duties on US goods.
Dubbed 'Liberation Day' by the president, Wednesday's announcement sparked Wall Street's worst two-day wipeout in history - with $5 trillion wiped off the value of US stocks.
Stocks crashed again on Friday, as it looks increasingly likely that President Donald Trump's tariffs will cause a global recession.
Cramer, one of CNBC's star commentators, as among those who believes it could go into a full-on market crash and said 'I can't think of a single reason why you would buy a stock.'
'If you wanted to make the market crash, I think you would go with this game plan,' he said bluntly Friday.
While there is no specific threshold for a crash, it is generally considered a sudden 10 to 20% drop across several stocks in the market.
Long-time CNBC talking head Jim Cramer (pictured) warned that the economy could genuinely 'crash' if Donald Trump continues with his tariff program
The White House announced a baseline 10 percent tariff on all imports, effective April 5, with higher rates for countries imposing steeper duties on US goods on Wednesday, which Trump declared 'Liberation Day'
Cramer referred to Trump's current strategy as a 'they know nothing game plan.'
'It should not be in our country's interest to have the market crash,' Cramer added.
Cramer stunned anchor Carl Quintanilla by saying 'I don't care' when asking if he was saying this so he'd be 'written up' for saying it.
Quintanilla even warned Cramer that it was against network policy to use that particular word, literally stating: 'We don't use that word on this air.'
Cramer interrupted: 'No I'm just saying if you bottom-fished Thursday and if you bottom-fished Friday in 1987, you slept with the fishes on Monday.'
He praised the likes of some of Trump's advisors, like Peter Navarro and Treasury Secretary Scott Bessent, but believes they wouldn't tell Trump he's wrong on the issue.
'[Bessent] wouldn't even go to the president and say, ''Look, we don't really want a crash. You don't want to be as hard-line. Maybe you do the TikTok deal. Maybe you say, look, but here's a way to cure things", which was the way that Nvidia did with Taiwan.
'Instead, he said, "they could have a crash, I don't see why not. Why would you buy stocks?"'
Cramer (pictured) referred to Trump's current strategy as a 'they know nothing game plan.' 'It should not be in our country's interest to have the market crash,' he added
Cramer wondered whether Treasury Secretary Scott Bessent (pictured) could change Trump's mind on the tariffs
Trump made the announcement Wednesday afternoon in the White House Rose Garden, unveiling broad 10 percent tariffs — with even higher rates for certain countries. This includes 34 percent on China, and 20 percent on the European Union.
The president used aggressive rhetoric to describe a global trade system that the United States helped to build after World War II, saying 'our country has been looted, pillaged, raped, plundered' by other nations.
He has promised that factory jobs will return back to the United States as a result of the taxes, but his policies risk a sudden economic slowdown as consumers and businesses could face sharp price hikes on autos, clothes and other goods.
US stocks have lost about $9.6 trillion in value since January 17 — the Friday before President Trump began his second term, according to MarketWatch analysis Dow Jones Market Data.
Roughly $5 trillion of that was wiped out on Thursday and Friday alone — marking the biggest two-day loss of shareholder value ever recorded, according to the data.
Markets have seen bigger percentage drops, such as in 1929, but never as much in dollar terms. Wall Street's biggest two-day plunge came during the 1929 crash, when the Dow tumbled around 25% over October 28 and 29.
The carnage has hit ordinary Americans whose retirement savings, including 401(K) are tied to the market.
The flagship Dow Jones index of America's 30 biggest companies plunged an astonishing 2,200 points, its biggest daily drop since June 2020.
It came after China imposed fresh tariffs on all US goods in response to the Trump's sweeping levies, escalating a global trade war.
But panicking Americans checking their 401(K)s, IRAs and trading apps were advised to sit tight for now and not panic sell. They should speak to the experts managing their investments and seek out a financial advisor if they do not have one.
